A total of 2,179,585,000 shares (subject to the Over-allotment Option) (the “Offer Shares”) are being offered
under the Global Offering, comprising an international offering of 2,070,605,000 Offer Shares (subject to
reallocation and the Over-allotment Option) (the “International Offering”) and a Hong Kong Public Offering of
108,980,000 Offer Shares (subject to reallocation) (the “Hong Kong Public Offering”), representing
approximately 95% and 5% of the total number of the Offer Shares, respectively.
The offer price (the “Offer Price”) is currently expected to be between HK$17 and HK$22 per Offer Share.
The Option Grantors and the Company expect to grant to the International Underwriters, exercisable by the
Joint Representatives (on behalf of the International Underwriters), the Overallotment Option, which will be
exercisable from the date of the International Underwriting Agreement until 30 days after the last day for the
lodging of applications under the Hong Kong Public Offering, to sell up to 125,451,000 Class B Shares by the
Option Grantors or issue up to 201,486,000 New Class B Shares by the Company, representing approximately
15% of the initial Offer Shares, at the same price per Offer Share under the International Offering, to, among
other things, cover over-allocations in the International Offering, if any.
Goldman Sachs, Morgan Stanley and CLSA are joint sponsors, joint global coordinators, joint bookrunners and joint lead managers of the Global Offering.
Intended Use of Proceeds
Assuming an Offer Price of HK$19.50, the mid-point of the Offer Price range, and assuming the Over-allotment
option is not exercised, the net proceeds from the Global Offering are estimated to be approximately
HK$27,560.9 million after deducting underwriting fees and commissions and estimated expenses relating to
the Global Offering.
The Company intends to use the proceeds from this offering for the following purposes:
- Approximately 30% for research and development as well as other efforts to develop the Company’s core
in-house products, including smartphones, smart TVs, laptops, AI speakers and smart routers; - Approximately 30% for investments to expand and strengthen the Company’s ecosystem primarily in the
fields of IoT and lifestyle products and mobile internet services, including AI; - Approximately 30% for global expansion, including but not limited to hiring local teams across business
functions and investing in its retail partners; and - Approximately 10% for working capital and general corporate purposes.
Weighted Voting Rights (“WVR”) Structure
The Company will have a weighted voting rightsstructure, effective immediately upon completion of the Global
Offering. Under this structure, the Company’s share capital will comprise Class A Shares and Class B Shares.
Each Class A Share will entitle the holder thereof to exercise 10 votes, and each Class B Share will entitle the
holder thereof to exercise one vote. The Company’s WVR structure will enable the Company to benefit from
the continuing vision and leadership of the WVR Beneficiaries, who will control the Company with a view to its
long-term prospects and strategy.
Lei Jun, executive director, Founder, Chairman and Chief Executive Officer of Xiaomi said, “Today we present
ourselves to you as we prepare to enter a new stage in our journey.
“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.”
Overview of Xiaomi
Xiaomi is an internet company with smartphones and smart hardware connected by an IoT platform at its core.
Xiaomi delivers its amazing products at honest prices to users through its highly efficient new retail channels,
and then provides its users with comprehensive internet services. With these internet services, the Company
is able to closely engage and interact with users on its platform, thus increasing user stickiness and
monetization opportunities.
Xiaomi was founded in 2010 by a group of accomplished engineers and designers, under the leadership of Lei
Jun, who believed that high-quality and well-designed technology products and services should be accessible
to the world. The Company is built on a relentless pursuit of innovation and an unwavering focus on quality
and efficiency.
Public Offer Timeline
The Hong Kong Public Offering is expected to commence at 9:00 am on 25 June 2018 and is expected to close
at 12:00 noon on 28 June 2018. Allotment results and the Offer Price are expected to be announced or made
available on 6 July 2018. Dealings in the Shares on the Main Board of the Stock Exchange are expected to
commence on 9 July 2018, under the stock code 1810.
White Application Forms and Prospectuses of the Company can be obtained from designated branches of the
Receiving Banks, Bank of China (Hong Kong) Limited, Wing Lung Bank Limited, Standard Chartered Bank (Hong
Kong) Limited, and Hang Seng Bank Limited, and offices of the Joint Global Coordinators. Applicants can submit
applications using the White Application Form or online via the designated website of the White Form eIPO
service provider at www.eipo.com.hk. Applicants who would like the Hong Kong Public Offer Shares to be
deposited directly into CCASS can also use the Yellow Application Forms or give electronic application
instructions to Hong Kong Securities Clearing Company Limited via CCASS.
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