After Xiaomi's IPO in Hong Kong, shares dived nearly 4 percent in morning trading on Monday, falling as much as 5.9 percent at one point.
The shares touched a low of HK$16.50 in opening deals on Monday. That is far short of the oversubscription rates for other tech IPOs in Hong Kong.
Xiaomi's IPO began on Monday in Hong Kong to a fairly slow start, with trade slipping more than 2%, sometimes dropping by 5.88%. "And they have to speed up the pace if they aim for a good valuation", said Hong Hao, the chief strategist at brokerage BOCOM International.
Despite Xiaomi's challenging debut, Reuters notes that Hang Seng - the Hong Kong stock market index - was 1.7 percent higher.
Despite being one of the most anticipated Chinese technology public offerings this year, the group saw a disappointing valuation of US$54 billion, well below its ambitious US$100 billion target.
Xiaomi's Founder, Chairman and CEO Lei Jun, center, hits the gong during the listing ceremony at the Hong Kong Stock Exchange in Hong Kong.Читайте также: Cristiano Ronaldo signs for Juventus from Real Madrid
Typically companies are valued on a multiple of profits or sales.
Xiaomi's IPO had been expected to raise up to $10 billion, split between a Hong Kong and a mainland offering, which was postponed last month in a surprise move.
The company, which had hoped to be valued at $100bn (£75 billion) earlier this year, is now worth about $53bn, making it the third largest listed maker of mobile phones.
Still, the eight-year-old company, which has ambitions to transform itself from a low-priced maker of phones to a global rival to match Apple, managed to raise $4.72bn, making it the world's biggest technology float in four years.
Xiaomi is the biggest smartphone seller in India and is making inroads in Europe.При любом использовании материалов сайта и дочерних проектов, гиперссылка на обязательна.
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