Xiaomi's market value tops $100 billion, reaching 2018 IPO goal
Xiaomi Corp. founder Lei Jun can finally rejoice after
the Chinese smartphone maker’s market value swelled past the $100 billion mark,
a figure his company fell far short of when it listed two years ago.
The firm’s stock rallied as much as 9.1% Wednesday to a fresh
record in Hong Kong, making it the 13th stock in the city’s benchmark Hang Seng
Index to have a market capitalization above $100 billion. It ended the day 7.6%
higher with a market value of HK$802 billion ($103 billion).
Xiaomi, which generates the majority of sales
from its smartphone business, originally eyed a $100 billion valuation for its
initial public offering, people close to the deal said in May 2018. But it was
only at half that level upon its debut, and shares traded below the HK$17
offering price for most of its first two years as a public company.
The stock saw its fortunes reverse in August,
after it was announced that Xiaomi would be added to the Hang Seng Index. Shares have
more than doubled since. Strong sales during China’s “Double 12” shopping
festival have helped fuel this month’s 20% stock jump, and a proposal to boost
the weighting of companies like Xiaomi in the Hang Seng Index to 8% from 5% could lead to
further gains.
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