FINANCIAL SERVICES | Staff Reporter, Hong Kong

Xiaomi reportedly tapped Citic Securities for CDRs amidst mega IPO preparations

The smartphone maker is gunning for $100b valuation in its public debut.

Bloomberg reports that smartphone maker Xiaomi has reportedly tapped on Citic Securities to handle the issuance of Chinese depositary receipts (CDRs) as it prepares for what may be Hong Kong’s largest IPO since Alibaba’s $25b public debut. 

Xiaomi may file for a public listing as soon as May as it sets it sights on a $100b valuation. The CDR will most likely come after the IPO, people with knowledge of the matter told Bloomberg.

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. China unveiled a pilot programme earlier this month, aiming to bring back the most valuable overseas-listed giants.

Final rules guiding the issuance of CDRs have yet to be worked out, which may delay Xiaomi from issuing shares in mainland China at the same time as Hong Kong.

Here’s more from Bloomberg:

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