Xiaomi puts indefinite delay on CDRs

HONG KONG: Chinese smartphone maker Xiaomi Corp said on Saturday there is no timeframe for a mainland share offering, casting doubt on Beijing’s efforts to lure foreign-listed Chinese tech giants back home.Xiaomi had been expected to raise up to $10 billion, split between its Hong Kong and mainland offerings.

But in a surprise move earlier this week, it postponed its mainland share offering until after it completes its scheduled July 7 listing in Hong Kong.

It did not say when it would restart its China depositary receipts (CDRs) issuance process or why it was postponing the mainland offering.

Sources told Reuters the decision was mainly because of a dispute between the company and Chinese regulators over the valuation of its CDRs, but the company denied this.

“We’ve had many rounds of discussions with the (Chinese) regulators and reached a consensus that to ensure the quality of our CDR issuance, it’s better that we go public in Hong Kong first,” Xiaomi’s chief financial officer, Shou Zi Chew, told a press conference in Hong Kong.

Xiaomi, which also makes internet-connected devices, has lined up $548 million from seven cornerstone investors including U.S. chipmaker Qualcomm Inc for its blockbuster Hong Kong IPO, Reuters reported on Thursday.

The Hong Kong offering is set to be the first listing under new exchange rules designed to attract tech floats, as competition heats up between Hong Kong, New York and the Chinese mainland.