Xiaomi Raises USD 4.72 Billion after HK IPO

China-based Xiaomi Corp raised USD 4.72 Billion in the world’s biggest technology float in four years from its Hong Kong initial public offering (IPO), people familiar with the transaction said on Friday.

After the IPO, the Company is valued at about USD 54 Billion. The pricing comes at a time when Hong Kong’s stock market had its benchmark Hang Sang index falling 6.5% over the past month as investors were concerned about the effects of increasing trade tensions between the U.S. and China.

Xiaomi’s shares sales are seen as a test to how the market will react toward the latter half of the year for Hong Kong IPOs, with offerings like Chinese platform Meituan Dianping’s online food-delivery-to-ticketing services. China Tower, the largest mobile mast operator, received approval for a Hong Kong IPO that could be valued up to USD 10 Billion.

Xiaomi is selling around 2.18 Billion shares at HK 17 each (USD 2.17), the bottom of the price range of HK 17 to HK 22, two people familiar with the matter said. It makes the IPO the largest in the tech sector since Alibaba raised USD 25 Billion in New York in 2014. In 2014, Xiaomi was valued at USD 46 Billion in its fundraising.

The valuation is less than the USD 100 Billion estimated valuation from sources earlier this year and the recent USD 70 Billion-plus target some analysts and investors. Xiaomi is expected to start trading in Hong Kong on July 9th.

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