Xiaomi to postpone Mainland share offering

The company may be aiming to complete its Hong Kong listing first.

Reuters reports that Chinese smartphone maker Xiaomi is postponing its Mainland offering until after it completes its listing in Hong Kong.

Also read: Xiaomi hit by $8.58b loss in Q1 ahead of blockbuster IPO

The firm did not detail why it is postponing the offering nor when it would take up the application process again.

Xiaomi said that it would submit an application to the China Securities Regulatory Commission to postpone the ongoing review of its Chinese Depository Receipts (CDRs) offering application.

The smartphone maker is reportedly planning to raise 30% of its shares through CDRs. With these financial instruments, companies that already trade on overseas exchanges, including Alibaba and Tencent Holdings Ltd., could issue securities that could then be purchased in the Mainland. 

Here’s more from Reuters: