Deals
How to Make a 56,823% Return With Hong Kong's Worst Ever IPO
- Smartphone maker is down to HK$9.97 from HK$17 issue price
- Billions of Xiaomi shares sold at just 1.95 cents in 2010
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Xiaomi Corp. is a perfect example of how taking a company public can make a select number of shareholders a lot of money, even if the IPO flops.
The stock lost about 30 percent in the six months that followed its Hong Kong debut, making it the city’s worst-performing initial public offering with a value of at least $3 billion, according to data compiled by Bloomberg. Selling pressure intensified this week after a mandatory holding period for some investors expired Wednesday.