Xiaomi drops in debut as investors question Internet vision

Chinese Smartphone Maker Xiaomi Falls in Hong Kong Trading Debut

The IPO opened at a price of HK $16.60 (about $2.12 USD) per share which is a fair amount below the original IPO value of HK $17.

Enthusiasm for Xiaomi may have waned because investors are holding out for other big Chinese tech IPOs on the horizon, Hong said.

The company is now the biggest smartphone vendor in India and is pushing into European markets including Spain and Russian Federation, though it has lost share in China recently to lower-cost rivals.

The lackluster start came after Xiaomi priced its IPO at the low end of an expected range, giving the company a valuation of $54 billion. The main Hong Kong stock market index ended 1.3 percent higher.

The IPO pricing valued the firm, which also makes internet-connected home appliances and gadgets, at about $54 billion, nearly half its original $100 billion ambition earlier this year.

"No matter how you look at it, it's too expensive for me", said Francis Lun, chief executive officer at brokerage GEO Securities, drawing comparisons between the price-to-earnings ratio of Xiaomi and Apple.

RAF100: Watch the full fly past to celebrate the RAF's 100th anniversary
He added: "The boat neck and cut is reminiscent of the wedding gown so it's a silhouette she knows wows". A total of 17 royals flanked the Queen on the Buckingham Palace balcony for the RAF celebrations .

Xiaomi CEO and co-founder Lei Jun acknowledged the unfortunate timing in remarks at the Hong Kong stock exchange on Monday morning.

He said Xiaomi will also continue to expand offerings within its "ecosystem", in which some of its nonsmartphone products such as TVs, power banks and electric scooters have been the top sellers in China.

The company is the first in Hong Kong to sell shares with a dual-class structure since the city changed its rules to allow founders to keep outsized voting rights, although that means the stock won't be included in MSCI's global benchmarks.

Xiaomi's founder Lei Jun described his company's business model as a "triathlon model" with three components; third-party hardware sales, smartphone sales, and "internet service" sales which include media and ads.

Tencent-backed online health care solutions platform WeDoctor, valued at US$5.5 billion after its latest round of fundraising, said on Monday it was actively preparing for a flotation in Hong Kong, despite the recent bearish sentiment in the market. The deal was led by CLSA, Goldman Sachs and Morgan Stanley.

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