Xiaomi officially went to Hong Kong for IPO. Why is Xiaomi in such a hurry to go public?

There are many advantages for a company to land in the capital market. First of all, through listing, the company can build a financing platform, which can not only successfully finance the funds needed for development, but also reach more high-quality capital holders and even strategic investors through the capital market, which plays a vital role in the long-term stable development of the company. Secondly, the company can effectively realize circulation and market value through listing, which is a very important source of confidence for the company's founders, investors, employees and even partners. Third, the company's listing can also play a good publicity role, establish a good image of the capital market, and be of great help to the company's brand image, product promotion, consumer trust and stickiness. So many companies will try their best to go public, and Xiaomi is no exception. It is necessary to realize value through listing and realize more possibilities.

Xiaomi's choice of IPO in Hong Kong is related to the policy, issuance system and background of A-share capital market, and also related to its own development rhythm.

1, the difference in the issuance system made Xiaomi decide to go to Hong Kong for IPO.

In recent years, with the development of domestic capital market and the characteristics of high premium, many companies flock to go public, resulting in the phenomenon of IPO "barrier lake" of listed companies. This phenomenon is not recent, and it has been showing this problem since the opening of the Growth Enterprise Market in 2009. At present, the issuance system of A-share capital market is still the approval system, and there are still hundreds of companies waiting in line for listing. According to the current distribution rhythm, if Xiaomi chooses to go public in China, it will take at least two years if there is no green channel. For companies in urgent need of funds, time is money. The HKEx has a loose issuing system, short time and high efficiency. Although the P/E ratio is much lower than that of the domestic capital market, it can raise funds quickly, which is very attractive to Xiaomi.

2. The particularity of the company's shareholding structure made Xiaomi decide to go to Hong Kong for IPO.

Judging from the situation of Xiaomi Company, the demand for funds in the early stage of development is more urgent, and Internet companies often set up special equity structures, and Xiaomi is no exception. As far as Xiaomi's current shareholding structure is concerned, it is difficult to achieve rapid landing in the domestic capital market. Therefore, Xiaomi's IPO in Hong Kong is a rational choice, which can not only raise funds quickly, but also avoid special shareholding structure restrictions.

3, anxious to go public, in the final analysis, it is still a capital demand.

Xiaomi has been listed for a long time, on the one hand, it stems from the capital demand of the company's development, on the other hand, it stems from the pressure exerted by early investors.