, Columnist
Millions of Xiaomi Shares May Be Underwater From Day One
A weak debut could push the stock below its cost price.
China depositary receipts may provide some relief.
Photographer: Miguel Candela/Getty Images
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Millions of shares in Xiaomi Corp. could be in unprofitable territory right from the start.
According to the smartphone maker’s prospectus, a total 48,787,104 Series F-1 preferred shares were issued to investors between December 2014 and August 2017. Early backers came into the startup through preferred stock that converts to ordinary shares upon Xiaomi’s IPO.