Xiaomi looks for IPO next year

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Chinese smartphone maker Xiaomi is set to go public next year according to Bloomberg.

The phone vendor is already talking to investment banks about a possible initial public offering and hopes to raise at least $50 billion from the IPO.

However, industry sources suggest that Xiaomi is being highly optimistic about its valuation.  According to the Bloomberg report, some executives have even been talking about raising $100 billion, a vast amount when you consider that the company was valued at $46 billion the last time it raised funds.

The IPO has been slated for Hong Kong in the second half of next year. The public offering would be the culmination of a revival of Xiaomi’s fortunes. It went through a sticky patch, under pressure from Chinese rivals such as Huawei and Oppo, but has since revived, partly prompted by its ventures in India.

Indian success

According to Bloomberg, the company is on the verge of overtaking Samsung as the leading smartphone vendor in the country.  “We want to transplant China’s business ideas into other countries,” said Lei Jun, CEO of Xiaomi, at the World Internet Conference in Wuzhen, without commenting on an IPO. “In India, we’ve created a miracle. After only three years, we’ve become number one.”

Officially, the company is keeping tight-lipped about its plans. Bloomberg quoted Kaylene Hong, a Xiaomi spokeswoman, as saying that the company did not comment on IPO matters.