The Chinese smartphone manufacturer Xiaomi, preparing for an IPO, published an offering prospectus on the Hong Kong Stock Exchange, in which it indicated the price of its shares. Xiaomi plans to sell 108.98 million shares to Chinese investors and 2.07 billion to international investors. The shares will cost between 17 and 22 Hong Kong dollars ($2.2–2.8 at today's exchange rate). Thus, in total the company plans to raise from $4.8 billion to $6.1 billion.

Xiaomi opened the order book for investors on June 25.

The company said it plans to spend 30% of the funds raised from investors on research and development of its core product line: smartphones, smart TVs, laptops, speakers with a voice assistant, smart routers for the home and other devices. The company wants to invest another 30% of the money in expanding the product line in the field of the Internet of things and artificial intelligence. 30% of the investment will go to expansion - in particular, Xiaomi wants to strengthen its position in India, as well as enter new countries in Southeast Asia, Europe and the USA. The remaining money will be spent on employee salaries and other corporate needs.

As Reuters reported, citing its own sources, Xiaomi plans to attract eight key investors, including US chipmaker Qualcomm Inc, Chinese express delivery operator SF Holding Co Ltd, telecommunications service provider China Mobile Ltd and state-owned conglomerate China Merchants Group Ltd.

Xiaomi planned to simultaneously list shares on the Hong Kong Stock Exchange and CDRs (Chinese Depository Receipts) on the stock exchange in Shanghai, hoping to raise up to $10 billion. This would then become the largest IPO in the last four years since the entry of the Chinese Internet giant Alibaba Group into the stock exchange. But the company was unable to agree with regulators on the price of the receipts and postponed the placement of CDRs until the end of the IPO on the Hong Kong Stock Exchange.

The Wall Street Journal (WSJ) called Xiaomi's IPO a "blockbuster": the company wanted investors to value it at a higher earnings ratio than Apple. At the same time, Xiaomi is often called the “Chinese Apple,” noting the company’s success in the smartphone market. Apple's capitalization (now $906 billion) is 3.5 annual turnover, WSJ cited S&P Global Market data, and Xiaomi was counting on an estimate of 5.5 annual turnover. Otkritie Broker analyst Timur Nigmatullin noted that Apple is too big to continue to increase market share, while Xiaomi is a small but faster growing manufacturer that has a chance to increase its share both in China and around the world.

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Xiaomi sells its products in 74 countries. In the IPO prospectus, the company emphasizes that it will invest the raised money in expanding its business in these countries, including Russia. Russia, like China, Ukraine, Egypt, and Israel, is one of 15 countries where the Xiaomi brand entered the top 5 best-selling smartphones in the fourth quarter of 2017.

Along with India and Indonesia, Russia is one of the countries outside of China where Xiaomi has begun to monetize its Internet services, the company writes in the prospectus. For example, the Mi Music App ranked first in the music app category by average monthly audience size in March 2018 on Google Play, while the company's browser and video app Mi Video ranked second in their own categories.

Xiaomi intends to raise up to $6.1 billion in IPO