Xiaomi raises $3.05 billion United States dollars following its IPO

Xiaomi raises $3.05 billion United States dollars following its IPO

Xiaomi raises $3.05 billion United States dollars following its IPO

Xiaomi's shares dipped in early trading, hitting HK$16 in mid-morning trade, down almost 6% from the HK$17 they had been sold at.

In a statement after the market close, Nissan said most of its Japanese plants produced inspection reports that contained falsified measurements on exhaust emissions and fuel economy. The city has loosened its rules to attract more big-name Chinese technology companies and benefit from one of the world's biggest online booms.

There could be repercussions for Hong Kong's IPO outlook, Jackson Wong (黃志陽) of Huarong International Securities Ltd (華融國際金融) said, adding that a tepid start for Xiaomi would suggest a weak appetite for new listings in the territory of Hong Kong. This has resulted in the Hong Kong stock market, Hang Seng, falling to a nine-month low.

The company had also expected to split its listing with another offering on mainland China, but cancelled that.

The Sino-U.S. trade dispute has roiled financial markets including stocks and currencies, and the global trading of commodities from soybeans to coal over the past several weeks.

"The tit-for-tat going on in the political front between the Unites States and China is spilling over, especially in the tech space", said Jake Saunders, an analyst at ABI Research.

Potential investors also struggled to view the company as the internet play it considers itself to be, rather than as a smartphone maker - the lower-margin business that now generates most of its profits, sources said. Billionaire co-founder Lei Jun struck the gong on Monday in Hong Kong, ushering onto public markets a company twice as expensive as Apple that's pitching itself as a high-growth Internet play on par with the likes of Facebook Inc.

Xiaomi argued that it should receive a higher valuation than other hardware makers because of the internet services - such as music and video streaming apps - it offers with its devices. The stock opened at HK$16.60, below the list price of HK$17, and it quickly fell to HK$16 before later recovering.

The company had grown from a small startup to become the world's fourth-largest smartphone vendor at the end of a year ago. It also makes internet-connected home appliances and gadgets, including scooters, air purifiers, and rice cookers. Most of its sales are in China, but it's growing aggressively in other countries.

Xiaomi is the biggest smartphone seller in India and is making inroads in Europe.

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