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.