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charlesarthur : flotation   1

Mobiles to Americans? That's not the only thing Xiaomi's selling • Bloomberg Gadfly
Tim Culpan:
<p>Xiaomi's plan [to sell phones in the US] is as much about selling shares in its forthcoming IPO as it is about selling handsets to Americans.

Talk of a $100bn valuation for the Chinese startup would make it vastly overvalued. That doesn't mean bankers won't try to help it reach such lofty heights, or that Chinese investors won't pay through the roof to bag some shares. However to get there, Xiaomi's leadership, financial boffins and marketing teams all need to keep kicking the can down the road.

The story for 2017 was about the company's turnaround, from a slump in 2015 to a rebound in 2016 and continued momentum last year. India was the main engine, and we can expect more of that noise over the coming 12 months. But Xiaomi needs another booster rocket if it's to go to the moon like everybody hopes. Hence the talk of a U.S. entry, where growth in the most recent quarter was much faster than for Asia when measured in revenue terms.

And note the timing: end of this year or early next. That would be after Xiaomi's IPO, providing a great talking point for bankers while not requiring them to demonstrate any actual success.</p>
flotation  xiaomi  ipo 
march 2018 by charlesarthur

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