Media: Xiaomi comes closer to HK IPO

Chinese technology giant Xiaomi is expected to stand at a listing hearing for formal approval of initial public offering on the Hong Kong stock exchange Thursday, a step closer to a listing for the company in the city in early July, according to a report from Hong Kong Economic Times on Monday.

Bloomberg reported the same hearing date late last month by citing people with knowledge of the matter, though a source told Bloomberg the timing could change depending on the volume of questions from the exchange ahead of the meeting.

According to HKET, Xiaomi could raise more than $7 billion as soon as the end of this month if its application is approved by the bourse's listing committee.

The Beijing-based smartphone maker first filed with the Hong Kong bourse on May 3, while the city's new listing rules took effect at the end of April, giving a go-ahead to those with weighted voting rights structure. The company's IPO launch isn’t the sole source of media attention — Xiaomi's CDR issuance has also long been expected amid pending Chinese depository receipt regulations.

CDRs, similar to American depositary receipts, are certificates that allow investors to hold shares listed across borders.

The China Securities Depository and Clearing Corporation released a draft with specific focus on CDR registration, depository and clearing operations on May 21. The public had until June 1 to comment on the draft rules. Earlier May, China Securities Regulatory Commission sought public opinion until June 3 for draft rules on CDRs, with detailed procedures and information disclosure requirements.

However, Xiaomi's final plan for first share offering and CDR issuing has not been certified by the company.

Financial news outlet Yicai cited a source familiar with Xiaomi's IPO, saying the report about July 16 for CDR issuance and July 17 for IPO launching was not accurate, and the plan was just one of those predicted by regulator and market.