Shares of Chinese smartphone maker Xiaomi stumble on their debut, slipping as much as 6%
Shares of Chinese smartphone maker Xiaomi stumbled on their debut in Hong Kong on Monday, opening for trade down more than 2 percent and slipping as much as 5.88 percent during the session. That came after a disappointing pricing and a listing delay in mainland China.
Xiaomi shares opened down at 16.60 Hong Kong dollars ($2.12) a share, according to Dow Jones, below the initial public offering price of HK$17 ($2.17). Shares traded at HK$16.58 apiece as of 3:35 p.m. HK/SINbefore closing at $16.80,after slipping as low as HK$16 earlier.
The company had earlier set a range of HK$17 to HK$22 for the approximately 2.18 billion shares on offer, eventually pricing its IPO at the low-end of an indicative range on Friday. Following the deduction of fees and expenses, Xiaomi said it raised around HK$23.97 billion ($3.05 billion).
The broader Hang Seng Index, meanwhile, rose 1.32 percent to close at 28,688.50.
The Chinese company, established only in 2010, is now the world’s fourth-largest smartphone manufacturer by producing low-priced devices that have drawn comparisons — favorable and accusatory — to the iPhone.
“I think short-term stock price is mostly dictated by market conditions. What we will be doing is to focus on the long-term growth of our business,” Xiaomi President and Co-Founder Lin Bin told CNBC’s Emily Tan on Monday.