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Xiaomi IPO Draws Bids at 11% Discount in Gray Market

  • Some investors saw bids as low as HK$15.20, people say
  • Weak demand comes after Xiaomi cut its valuation in half
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Xiaomi IPO Is Said to Raise $4.7 Billion After Low-End Pricing
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Xiaomi Corp.’s debut is off to a bad start even before its shares officially begin trading in Hong Kong on Monday.

Some institutional investors saw bids for the Chinese smartphone maker’s shares as low as HK$15.20 on Thursday with no offers in gray-market trading, according to two people familiar with the matter. That’s 11 percent below the issue price. There was some selling interest at a 5 percent discount though no firm offers, according to Andrew Jackson, head of Japanese equities at Soochow CSSD Capital Markets in Singapore.