Skip to content
Subscriber Only

Xiaomi Investors Question $100 Billion Valuation Goal for IPO

  • Bankers touted hot stock debut at $100 billion market value
  • Smartphone maker’s worth now seen close to $70 billion
Video player cover image
Bloomberg’s Lulu Chen reports on Xiaomi’s valuation ahead of a planned IPO.(Source: Bloomberg)

Investors hadn’t even sifted through Xiaomi Corp.’s 597-page filing for an initial public offering last week when doubts over the smartphone maker’s lofty valuation figures began percolating.

People close to the deal had built up the idea that Xiaomi could raise at least $10 billion at a valuation of $100 billion, which would make it the biggest global offering since Alibaba Group Holding Ltd. debuted in New York four years ago. Once investors got a peek at Xiaomi’s actual numbers last week, however, a new number has been making the rounds: the valuation would be more likely to start around $60 billion to $70 billion, people familiar with the matter said, asking not to be identified because the process isn’t public.