Xiaomi’s CDR prospectus disclosed that CDR issuance using inquiry pricing to determine prices, and CDR is issued at a lower price than Hong Kong stocks. The Group plans to issue Class B common stocks as the basic stocks to be converted into CDRs, and “the proportion of the total share capital after the issuance of CDRs and Hong Kong stocks shall not be less than 7%”.
In addition, the proportion of the underlying shares corresponding to the issuance of CDR to the total size of the CDR and Hong Kong stocks (including the issuance of old shares) is not less than 50%.
In addition, according to media reports, Xiaomi will hold a press conference on the Global Offering Shares on June 23. Under normal circumstances, the IPO news conference will start the IPO on the next trading day, that is, from June 25 onwards.
Not less than 7% is financing how much? This depends on the market value of Xiaomi. If the analysts of major institutions give over 80 billion U.S. dollars in market value, the CDR financing limit may exceed 5.6 billion U.S. dollars.
It is understood that as one of the underwriters of Xiaomi IPO, Goldman Sachs analysts believe that Xiaomi’s market value is between US$70 billion and US$86 billion. In the report, Morgan Stanley stated that the current fair value of Xiaomi can reach 84.8 billion U.S. dollars.
JP Morgan Chase Bank analysts said in the report that due to strong cash flow growth, millet fair value is 71 billion to 92 billion US dollars. CITIC Lyon Securities analyst pointed out in the report, Xiaomi established a huge Internet service platform, Xiaomi's market value of 80 billion to 90 billion US dollars.
Credit Suisse analysts pointed out in the report that Xiaomi is very suitable for "iceberg theory", Internet service profit is 90% below the iceberg, and Xiaomi's market value is between 71 billion and 94 billion US dollars.