...but are yet to reach the IPO price of HKD 17.
Buy Xiaomi's products as well as its stock? Image credit: Xiaomi's Weibo
Xiaomi's (01810:HKEX) stock price hits a yearly high at HKD 15.54 at the midday break on July 7, 2020. For the previous four trading days, the price had been rallying by nearly 20%, rising from HKD 12.74.
Xiaomi went public in the HK Stock Exchange in July 2018, touting itself as the biggest tech listing since 2014, with a market capitalization of USD 53.9bn. Originally planned to be the first enterprise to issue CDR (Chinese Depository Receipt) in Chinese A shares, Xiaomi shifted to the Hong Kong stock market partly due to the incompetence in reporting to 84 inquiries raised by China Securities Regulatory Committee, in which the company’s business model, equity structure, patents and performance were questioned.
As Xiaomi secured a top 5 position in the global smartphone market share at around 10%, investors began to regain confidence. Plus, the company’s foresight and earlier moves aligned it with the ‘5G+IoT’ revolution – now its market value has the potential to go back to the USD 50 billion valuation from the time of its IPO.