Xiaomi scraps CDR plans

IFR 2299 7 September to 13 September 2019
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Smartphone maker Xiaomi has decided to terminate plans to sell Chinese depositary receipts in the A-share markets, according to a company announcement.

Beijing-based, Cayman-domiciled Xiaomi planned a dual listing in Hong Kong and the A-share markets at one point mid-last year but dropped the domestic leg at the last minute, delaying plans for the first CDR sale in China’s domestic market. The company went ahead and raised HK$37.1bn (US$4.7bn) from a Hong Kong IPO in July last year.

The delay of the domestic offering was mainly due to a dispute between the company and regulators over the valuation of its CDRs, IFR reported at the time.

Xiaomi said on August 30 that it has decided to terminate the proposed CDR offering as it is currently focusing on business development. The China Securities Regulatory Commission has accepted the withdrawal.