Yes, you read it right as one of the world’s largest cellphone manufacturer Xiaomi might finally be going public sometime next year in 2018; with the company according to reports seeking a valuation of at least $50 Billion.
According to a recent report from Bloomberg’s sources, the company Xiaomi is in talks with investment banks and might start off its initial public offering also called (IPO) in Hong Kong. The alleged valuation would be higher than valuation that the company received back in the year 2014 as part of its funding round which is $46 Billion.
Since the company is famous for selling gadgets at razor-thin margins along with software ecosystem depended on to provide additional revenue hence the investors according to a survey are skeptical because of company’s business model. The basic issue is that Xiaomi has a highly diverse portfolio of (when it certainly comes to) gadgets and the software ecosystem isn’t nearly as prominent as Google’s or Apple’s.
The company is reportedly confident that it will successfully fetch a valuation of at least $50 billion. Moreover, the company has also been massively investing in offline retail, in simple words a flight from the company’s previous dependence on an online-only availability thing so basically an emphasis on an offline presence is relatively new territory for Xiaomi.
According to a spokesperson at Xiaomi the company does not comment on matters related to a possible IPO but reports show that it could happen as early as the second half of coming year.
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