Xiaomi launches $6 billion IPO in Hong Kong

Chinese gadget giant Xiaomi has launched its initial public offering in the Hong Kong stock exchange that could raise over $6 billion.

2,179,585,000 shares will be on offer at a price range of HK$17 to HK$22 per share. If they all sell at the upper end of that range that will value the company at around $70 billion and raise around $6 billion. A proposed listing in China has been shelved for now.

“Today we present ourselves to you as we prepare to enter a new stage in our journey,” said Lei Jun, Founder, Chairman and CEO of Xiaomi. “We are an innovation-driven internet company committed to the principle of ‘amazing products at honest pricing’.

“Leveraging our unique ‘triathlon’ business model, we maintain excellent design and outstanding quality in our products, while pricing our products as close as possible to cost by selling them to users through highly efficient online and offline new retail channels. We then provide our users with a range of comprehensive and engaging internet services.

“Xiaomi’s achievements so far illustrate the strength and resilience of our model. Within seven years of our founding, our annual revenue exceeded RMB100 billion, achieving a growth rate that many traditional companies are unable to match.

“We believe that the potential of our global business is limited only by our imagination. With our unique ecosystem model, we have mobilized many like-minded entrepreneurs, and we are not only changing industries in China, but also elsewhere in the world.

“Fundamentally, the Internet is all about transparency, efficiency, and equality. We want to allow everyone to enjoy the benefits of technology. That is the goal that all Xiaomi employees and I are working tirelessly for.”

The triathlon business model simply refers to Xiaomi’s involvement in hardware, internet services and ecommerce all at once. In that sense it’s often compared to Apple, but it has only recently started to embrace third party sales channels. Xiaomi plans to spend the money raised equally on R&D, other investments and global expansion.

Xiaomi triathlon

Cisco offers to lend cities enough cash to buy its IoT gear

Cisco Capital has teamed up with a bunch of other sources of cash to launch the City Financing Acceleration Program.

The apparent purpose of this program is to front up the cash to local authorities keen to become Smart Cities. Apparently smartening an entire city’s worth of infrastructure involves fairly hefty capital outlay and that’s putting some cash-strapped councils off taking the plunge. So Cisco has decided to go down the financing route to kick-start the market.

“Funding is a major stumbling block for municipalities beginning their smart city transformation,” said Anil Menon, Global President of Cisco’s Smart+Connected Communities. “With our partners, Cisco will bring the capital and expertise it takes to make smart city projects a reality. Digital Alpha, APG, and Whitehelm Capital bring a fresh perspective on investment in an area that has previously been perceived as too new and, therefore, too difficult to finance.”

In other news Cisco renamed its Smart+Connected Digital Platform to Cisco Kinetic for Cities, in reference to its general IoT platform recently. On top of that is has added additional tools to support public safety, including Cisco Spark Collaboration stuff. Lastly Cisco is using the town of Cary, North Carolina as a ‘living lab’ to showcase all this smart city cleverness.