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00:00:00
>>
FOREIGN]
> Shares fell as much as 6% on its debut in Hong Kong, trading near the bottom of a range of prices on offer. It puts Xiaomi's market value at about $50 billion, making it the world's third largest listed maker of mobile devices but that's a far cry from the 100 billion that the company was talking about last year.
APPLAUSE
>> After months of hype, Chinese smartphone maker Xiaomi saw a disappointing IPO on Monday.>>
00:00:30
It's been trying to bill itself as the next big Internet company but as Reuters Julie Zhu explains, investors have struggled to see it as more than a maker of cheap smartphones.>> I think according to its founder and CEO Lei Jun some who see himself as the future Apple, plus Tencents company.
00:00:48
While many investors do not necessarily buy into this store idea. I guess its debut was not as great as the company expected. This IPO was designed to help finance its overseas expansion plans. It was expected to raise up to 10 billion, while it only endred up raising 4.7 billion.
00:01:09
>> This may also be a blow for Hong Kong. The city this year aimed to lure in tech listings by rewriting regulations to allow dual class shares. It's a structure common among US tech firms. And in fact, this year's said to be a packed schedule for tech IPOs there, with nearly $7 billion in listings.
00:01:27
But analysts say, like Xiaomi, it may be hard for all of them to pull down a high price.>> I think in the stock market, a good company doesn't necessarily mean you're a good stock. Xiaomi's a good company, but all the other tech candidates, they're companies too. This issue is about where investors will put their money.
00:01:46
I think going forward, the company executives and their advisors, they have to adjust their expectations of valuations. They'll probably take a more conservative approach in pricing.>> Xiaomi sold 2.18 billion shares, still making the IPO the largest in the tech sector since Alibaba, which raised 25 billion in New York four years ago.