FINANCIAL SERVICES | Staff Reporter, Hong Kong

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

However, Xiaomi is still on track as smartphone shipments ballooned 88%.

Reuters reports that Chinese smartphone maker Xiaomi was hit by a whopping $8.58b (7b yuan) loss in Q1 ahead of its public debut that widely expected to be the world's largest listing in almost four years. 

Also read: Xiaomi IPO to make millionaires out of rank and file workers

That compares with a net loss of $53.79b (43.89b yuan) for the whole of 2017, according to the company’s draft prospectus.

With the exclusion of one-off items, Xiaomi made a net profit of $1.27b (1.04b yuan) in Q1 thanks to soaring smartphone shipments which ballooned 88% YoY.

Also read: Blockbuster IPOs set to trigger cash crunch

The smartphone maker is reportedly planning to raise up to 30% of its blockbuster $10b flotation by selling shares in the Mainland whilst offering the remainder in Hong Kong through issuance of Chinese Depository Receipts.

Under the tentative timetable, Xiaomi plans to price its Hong Kong and China share offerings on the same day and begin trading in China a day before its shares float in Hong Kong.

With CDRs, companies that already trade on overseas exchanges, including Alibaba and Tencent Holdings Ltd., would issue securities that could be purchased in mainland China.

Here’s more from Reuters:

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