Xiaomi lays down terms for blockbuster IPO

The smartphone maker is said to offer 2.18 billion shares at $17 to $22 apiece.

Bloomberg reports that Chinese smartphone maker Xiaomi has laid down tentative terms for its mega IPO with an initial offering 2.18 billion shares priced at $17 to $22 apiece. 

Also read: Xiaomi IPO to make millionaires out of rank and file workers

Wireless carrier firm China Mobile Ltd., and US wireless chip giant Qualcomm are said to be amongst those in talks to become cornerstone investors with potential investments of around US$100m each, sources told Bloomberg.

CMB International’s private equity arm is said to be mulling a potential US$191m investment, whilst an investment fund managed by China Development Bank is in talks to buy $518 million of shares and a fund backed by China Merchants Group is negotiating the purchase of about $220 million in stock.

Xiaomi reportedly aims to start taking orders from institutional investors as soon as Thursday with the aim of raising as much as US$6.1b in what is often touted as the world’s largest IPO after Alibaba.

The smartphone maker earlier announced that it was postponing its Mainland offering until after it completes its listing in Hong Kong.

Also read: Xiaomi reportedly lowers valuation after delaying Mainland offering

Xiaomi is said to be planning to raise 30% of its shares through Chinese Depository Receipts, a type of financial instrument that enables companies already trading on overseas exchanges to issue securities that can be purchased in the Mainland.

Here’s more from Bloomberg: