Wednesday, October 24, 2018
Martin Hennecke

Xiaomi seeks sponsors for 2018 IPO
Beijing-based electronics and software company Xiaomi, one of China's largest technology firms, has reportedly asked banks to pitch next Friday for a contemplated listing next year.

The Chinese smartphone maker's planned IPO is tipped to become the world's largest tech public offering in 2018.

Meanwhile, China's AK Medical Holdings is to start bookbuilding today. It plans to issue 250 million shares at an indicative price of between HK$1.66 and HK$2.0 per share as it aims to raise up to HK$500 million.

Its shares will debut on December 20. Minimum investment is HK$4,040. Goldman Sachs (Asia) is the sole IPO sponsor.

AK Medical will use about 40 percent of the net IPO proceeds to construct new facilities in Changzhou and to upgrade its existing facilities in Beijing. It also plans to acquire new equipment for both facilities. The Changzhou facility will start production next year.

Joint company secretary Han Yu said AK Medical is not worried about a possible drop in its share price after listing since several investors take a positive view of the company's business.

AK Medical is the first medical device firm that has commercialized the application of 3D printing technology in orthopedic joint and spine replacement implants in China. Several newly-listed firms saw their share prices tumble after listing recently, fueling worries for firms which are about to list.

ZhongAn Online P&C Insurance (6060) has fallen by 5.96 percent, while Razer (1337) has lost 2.23 percent. China Literature (0772) has dropped 4.07 percent, while Yixin Group (2858) has shed 3.92 percent.

In other IPO action, Alpha Era International Holdings said its retail tranche was oversubscribed by 41.6 times. It priced its IPO at 31 HK cents per share - in the upper end of the 20 HK cents to 35 HK cents indicative range. Its shares will start trading today.

It raised HK$20.7 million net, of which HK$5.5 million will be for expansion of its production capacity, while another HK$5.5 million will be used to expand and enhance product offerings through continuous product development. About HK$4.4 million will be used to attract and retain quality personnel.

Alpha Era International closed at 32 HK cents in gray market trading yesterday, 1.6 percent higher than its IPO price.

Frontpage Capital is sole sponsor.

Previous news : Two projects battle for buyers


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