Xiaomi is selling wide 2.18 billion shares in the IPO, 65 percent of which are primary, be consistent to the term sheet. The selling shareholders are early investor Morningside, a Chinese tender capital firm, and Xiaomi managers Wong Kong Kat, Liu De, Heng Feng and Li Wanqiang.
The smartphone maker is also set to supervision Hong Kong’s equity bankers one of the biggest paydays in recent years.
According to a antecedent offering document, Xiaomi is looking to pay an underwriting commission of 1 percent and an provocation fee of up to 0.25 percent. That means 23 banks on the IPO would dispensation a total fee of about $76 million, if Xiaomi prices at the top of its range.
While the thoroughgoing size of the deal makes the fees attractive, the commission rate is discredit than what Postal Savings Bank of China paid in its $7.6 billion IPO in 2016, the faction’s biggest listing in four years. The lender paid an underwriting commission of 1.1 percent and an impulse fee of up to 0.5 percent.
Reuters reported on Tuesday that Xiaomi had lowered its promising valuation to a range of $55 billion to $70 billion following its resolving to delay its mainland share offering until after its Hong Kong IPO.
The dilly-dally was triggered by a dispute between the company and regulators over the valuation of its China depositary arrival incomes (CDRs), sources said, casting doubt on Beijing’s efforts to attraction foreign-listed Chinese tech giants back home.
Xiaomi had been calculated to raise up to $10 billion, split between its Hong Kong and mainland gifts.
The delay to its CDRs is a blow for Chinese officials, who designed them as a means for China to strive globally for major tech listings and give mainland investors access to the realm’s tech champions.
Xiaomi’s blockbuster Hong Kong offering, on the other indicator, is set to be the first listing under new exchange rules designed to attract tech be suspends, as competition heats up between Hong Kong, New York, and the Chinese mainland.
China’s kindest provider of on-demand online services, Meituan-Dianping, also plans to order for a Hong Kong IPO later this week, which would be the metropolis’s second multibillion-dollar tech float this year, people unreserved with the matter said.
Meituan-Dianping said if it had specific plans to collect capital, it would announce them at an appropriate time. The people declined to be marked as the information was not yet public.
CLSA, Goldman Sachs, and Morgan Stanley are seam sponsors for Xiaomi’s Hong Kong IPO.