Xiaomi, one of the world’s leading Chinese Smartphone makers and consumer electronics company, has filed for an initial public offering (IPO) in Hong Kong on Thursday. In its filing, the company didn’t provide any details. However, according to reports, this IPO listing will be able to raise $10 billion and value the company at $100 billion, making it one of the biggest IPOs since Alibaba’s public listing in New York in 2014.
The last time Xiaomi raised money was in late 2014. This brought the company valuation to $45 billion and brought the company into the limelight, making it one of the world’s most valuable startups.
However, Xiaomi hit a roadblock in 2016 due to a drop in sales as the company struggled through supply chain problems.
CEO Lei Jun said in an open letter Thursday that the crisis was “a turning point” for the company. “As far as we know, apart from Xiaomi, there has never been another smartphone company that has successfully rebounded after a decline in sales,” he wrote.
According to the reports, the IPO would bring the valuation to around $100 billion; a person familiar with the company’s plans told CNNMoney that it could be lower than that.
Xiaomi was formed in 2010 and is considered to be the fifth largest smartphone maker in the world last year with 92 million devices shipped. Other than its primary business of making phones, the company also manufactures a variety of different internet-connected devices which includes laptops and smart rice cookers. The company claims that it sells its products to 74 countries and regions. It has seen a substantial growth in India where it has surpassed Samsung in smartphone manufacturing.
“We are building an open global ecosystem and not a walled garden,” said Lei, who, with co-founder Lin Bin, will continue to control the post-IPO company through a special class of shares. “I believe we can create a paradigm shift of efficiency in the business world and use technology to improve the lives of many.”
There is a wave of Chinese tech companies who are reportedly considering going public in the next year. The list includes one of the prominent online payment giant, Ant Financial.