4 western banks floating Xiaomi IPO, Chinese banks still yet to get a piece
Many Sino-observers say one way that the Chinese government wants to exhibit global muscle is through flinging its giant domestic brands around the world and lead other markets, too. Xiaomi hopes to be one of those ascendant brands as it reportedly looks for an initial public offering with a valuation of up to $100 billion — it was last valued at around $45 billion in 2014 and has since struggled through down sales years to turn around results in 2017.
But how much say will Chinese banks (and, to some extent, the government) have over it? A source to Bloomberg say that Credit Suisse, Deutsche Bank, Goldman Sachs and Morgan Stanley. Not a single mainland institution was mentioned, though the anonymous person did say that there was still room for Chinese banks to chip in. Xiaomi has yet to plan a time and place for share sales.
Xiaomi has expanded the breadth of its geographical reach with presences in Europe, Russia and India and the occasional whisper of an entry into the crowded United States smartphone market. To counter saturation concerns, it has also created a wider umbrella of products under the “Mi Home” name to give its approach a lifestyle twist. Chairman Lei Jun has said that he wanted to see 1,000 Mi Home retail stores worldwide within the next year.
How much of the Chinese way that President Xi Jinping touts will we see from Xiaomi, especially considering that it has adopted more accepted Android software for its international Android One smartphone model, the Mi A1? We’ve yet to see.