Xiaomi may only be worth $70 billion with very little help from Chinese investors

The first sign that Chinese tech manufacturer Xiaomi would probably be held back from its aspirational $100 billion valuation was when we found out that none of its IPO underwriters were from its homeland.

With a government that would like to have more influence over its burgeoning foreign-facing companies, the lack of money coming into Xiaomi from native coffers has been concerning to Beijing. With that in mind, the manufacturer has now lowered its valuation.

Reuters reports from its sources that Xiaomi will report a valuation of between US$55 billion and $70 billion when it launches its public offering in Hong Kong later this week. The company had planned to delay in selling shares in the mainland earlier on as it is disputing with the government on the value of the deposit receipts from Chinese investors.

With OPPO having just launched its virgin ship toward North America and Europe, Xiaomi could be in for rougher seas if it actually does end up wanting to come to the United States by early next year.

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About The Author
Jules Wang
Jules Wang is News Editor for Pocketnow and one of the hosts of the Pocketnow Weekly Podcast. He came onto the team in 2014 as an intern editing and producing videos and the podcast while he was studying journalism at Emerson College. He graduated the year after and entered into his current position at Pocketnow, full-time.