Xiaomi, China’s smartphone maker, submitted the country’s first application on Thursday to issue a CDR (Chinese Depositary Receipt), according to Chinese securities regulator’s website.
The Beijing-based company filed a prospectus for an IPO in Hong Kong last month with as much as 10 billion US dollars expected to be raised.
The IPO is set to be the largest listing globally in four years and one of the first in the city under new rules designed to attract tech listings, according to Reuters.
China Securities Regulatory Commission (CSRC) launched rules on issuing CDRs late Wednesday, allowing domestic flotation of overseas-listed innovators and also encouraging fast-growing companies to list at home.
If Xiaomi becomes the first one to dual-list through CDR, its CDR portion would be likely to account for up 30 percent of its total fundraising size, Reuters reported.
Ambition in globalization
The market’s high expectation is backed by Xiaomi’s strong sales.
In the first quarter of 2018, Xiaomi is again the world's fourth largest smartphone brand in terms of shipments, with a year-on-year growth rate of 87.8 percent, according to the latest report from the International Data Corporation (IDC).
It has been working on expanding its market across the world.
After China and India, Xiaomi is trying to get a foothold in Europe, starting with opening a store in Madrid last November.
Xiaomi also plans to enter Britain, Germany and the Netherlands although faced with fierce competition from Apple, Samsung, Chinese brands Huawei and ZTE.