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00:00:02
>> One of China's largest tech companies is about to go public in a very big way. It may even be the biggest IPO this year, but you might not have heard the name. Xiaomi makes cheap smartphones and other web connected devices. They filed for an initial public offering on the Hong Kong stock exchange on Thursday.
00:00:21
Reuters China technology reporter, Cate Cadell, has been following the story.>> They're expecting to raise about 10 billion during this IPO, which could put the company's value at 100 billion, which would be hugely significant. Hong Kong doesn't get tech listings of this size this often. And it's probably gonna be the largest since Alibaba in 2014.
00:00:42
Hong Kong has been trying to attract more and more tech listings, away from the US. A lot of the large Chinese tech companies list on the NASDAQ, including Alibaba and Baidu. So for Hong Kong to have a listing like this size coming back to Hong Kong, it's very significant.
00:00:56
>> Ahead of the IPO, Xiaomi gave investors a first detailed look at its financial position, saying its revenue for 2017 was $18 billion. That's more than 67% up from its results just one year before. Xiaomi makes dozens of Internet connected home appliances, from air purifiers to rice cookers.
00:01:16
But smartphones are a major part of the company's business and it may be enough to get some of the big players like Apple and Samsung worried.>> It will mean that Xiaomi will be a lot more aggressive probably in their expansion, especially overseas. And what that means is that in developing countries, Xiaomi is likely to really challenge those players.
00:01:36
And we've seen this in India where Xiaomi has overtaken Samsung to become the largest player in that market.>> Hong Kong's exchange is eying several Chinese tech listings in the next two years, from Chinese firms worth over $500 billion. Sources close to the IPO say it could be launched as early as June.