Xiaomi reportedly hammered the final nail in the coffin of plans to conduct an IPO in mainland China, a little more than a year after putting the move on ice to focus on a listing in Hong Kong.
The vendor told the Hong Kong Stock Exchange it was ditching its mainland move to focus instead on developing its business, Reuters reported. The Chinese vendor added a second IPO was unnecessary because it had sufficient capital to support its plans.
Xiaomi initially postponed its plan to offer China depositary receipts (CDRs) in June 2018, a few weeks before trading of its shares in Hong Kong began. Reuters reported at the time Chinese authorities had sought to keep the price of the CDRs low to encourage growth of a secondary market, leading to a dispute with the vendor.
The move to scrap the listing comes after Xiaomi reported a drop in profit and sluggish revenue growth during the second quarter, as shipments of its handsets stagnated.Subscribe to our daily newsletter Back