People  stand in front of Xiaomi's logo in Beijing. Picture: REUTERS
People stand in front of Xiaomi's logo in Beijing. Picture: REUTERS

Hong Kong — Xiaomi has tapped CLSA, Goldman Sachs and Morgan Stanley as joint sponsors for its proposed initial public offering (IPO), people with direct knowledge of the matter said, in what could potentially value the Chinese smartphone maker at up to $100bn.

The IPO could be the world’s biggest tech float in 2018 and is expected to come in the second half of the year, Thomson Reuters publication IFR reported
on Monday.

Xiaomi has separately tapped Credit Suisse and Deutsche Bank to work on its IPO, another source told Reuters. The source, however, added that the roles for global banks had not been decided and that no formal mandate had been given to any Chinese bank.

A spokesman for Xiaomi declined to comment.

The smartphone maker in December told bankers that it would beat its 2017 sales targets by up to 18% as it continued to benefit from a business overhaul that followed its overexpansion and fierce competition from domestic rivals including Oppo and Vivo.

Bankers expect Xiaomi’s profits to rise sharply in 2018 as its rebound continues, and have told the firm — valued at $46bn in a 2014 funding round before its slump — that a $100bn valuation at the IPO was possible.

The smartphone maker will add more banks to its IPO later in the process, according to IFR, which reported that Credit Suisse, Deutsche Bank, JP Morgan and two Chinese banks were expected to get the nod for roles as joint co-ordinators.

Xiaomi’s potential IPO would headline a series of hotly anticipated Chinese tech floats in Hong Kong in 2018. Other expected listings include China’s largest online wealth management platform, Lufax.

Reuters

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