Lei Jun knocked on the market. Figure / Vision China
On July 9, Xiaomi Group was officially listed on the Hong Kong Stock Exchange. Compared with the issue price of HK$17 per share, the opening price fell by 2.35% to HK$16.6, with a total market capitalization of HK$371.44 billion (approximately US$47.33 billion). At the close, Xiaomi's share price was fixed at HK$16.80, down 1.18% from the issue price, with a total market capitalization of HK$375.9 billion (approximately US$47.9 billion). Compared with Lei Jun’s July 5 disclosure of $54.3 billion, Xiaomi’s market capitalization IPO evaporated by $6.4 billion on the first day.
From being consistently optimistic about the market, and downgrading the valuation all the way, the stock price of the dark disk before the listing has broken through many times. The first joint stock company of the HKEx has different powers to push the IPO fever this year to a climax. Although the price is at the lower end of the range and the stock price is broken after the opening, the founder Lei Jun still shows confidence. On the evening of the 9th, the Xiaomi Hong Kong Main Board listing celebration feast, Lei Jun said that the investors who bought the shares of Xiaomi on the first day of listing will double.
The market value of millet on the first day of listing shrank by $6.4 billion
On July 9, Xiaomi Group broke the listing on the first day of trading, closing at HK$16.80, down 1.18% from the issue price, with a turnover of HK$7.682 billion and a total market value of HK$375.9 billion (approximately US$47.9 billion). Compared with Lei Jun’s July 5 disclosure of $54.3 billion, Xiaomi’s market capitalization IPO evaporated by $6.4 billion on the first day.
On July 6, Xiaomi set Hong Kong IPO price at HK$17 per share, which is the lower limit of its issue price range of HK$17-22/share, corresponding to a market value of HK$380.394 billion (approximately US$48.473 billion). On the day of the listing of Xiaomi, the stock price broke open at the opening price, opening price was 16.6 Hong Kong dollars, and then fell 5.67%. Despite the subsequent recovery, at the close of the trading day, the stock price has not broken through the issue price.
At the same time, the Hong Kong Hang Seng Index opened higher and closed at 372.88 points on the 9th trading day, an increase of 1.32%.
Prior to the listing transaction, Xiaomi's subscription was not as hot as expected. The announcement showed that its Hong Kong offering and international offering were all slightly oversubscribed. Overall, the global offering of 3.433 billion shares was only 1.57 times the circulation and the winning rate was 100%.
In the morning, in the face of Xiaomi's opening, he broke the news. Lei Jun was interviewed by the media after the opening of the news. “The Hong Kong Stock Exchange (administrative) president Li Xiaojia told me that he thought much better than he thought.” The recent big trend is not good, the short-term stock price is not the most important, the value of the long-term company is the most important.
On the evening of the 9th, the Xiaomi Hong Kong Main Board listing celebration feast, Lei Jun said that the investors who bought the shares of Xiaomi on the first day of listing will double.
Will be included in the HSI, A-share investors can buy through Hong Kong stocks
On July 9, the Beijing News reporter learned from the Hong Kong Hang Seng Index Company that Xiaomi will be included in the Hong Kong Hang Seng Index. The Hong Kong Hang Seng Index Company stated that since the Xiaomi Group meets the requirements of the Hang Seng Composite Index for rapid inclusion in the index rules, the constituents of the relevant index will take effect on July 23, 2018.
The Hong Kong Hang Seng Index announced that Xiaomi was included in the Hang Seng Composite Index, the Hang Seng Global Composite Index and the Hang Seng Internet Technology Industry Index. The relevant person in charge of the Hong Kong Hang Seng Index told the Beijing News reporter that after becoming a constituent of the Hong Kong Hang Seng Index, Xiaomi Group will become the Shanghai-Hong Kong Stock Connect investment target, and A-share investors can purchase Xiaomi stock through the Hong Kong stock exchange.
On May 7th, Hang Seng Index Company specifically announced that it will include the same-shared different-weight structure companies in the Hang Seng Composite Index from the third quarter. The industry is generally optimistic that Xiaomi, which will be listed on July 9, will become the first to eat crabs. people.
According to the relevant regulations of the Hong Kong Hang Seng Index Company, as long as the newly listed stocks are listed in the top 10% of the existing constituents of the existing Hang Seng Composite Index on the first trading day, the stock will be included in the Hang Seng Composite Index on the 10th trading day after listing. Its classification index.
A number of industry insiders said that after the listing of Xiaomi, it will be included in the Hang Seng Composite Index after 10 trading days, setting a record for the fastest entry into the Hang Seng Index in the history of Hong Kong stocks. This means that Xiaomi will become one of the best assets of the Hong Kong stock market, just like Tencent and ICBC. At the same time, Xiaomi will become the target of Shanghai-Hong Kong Stock Connect, and ordinary investors will be more convenient to invest in Xiaomi.
1 How do you view the break of the first day of the listing of Xiaomi?
Despite the national team as the cornerstone investor, Xiaomi still broke after the opening. At the close, Xiaomi's share price was HK$16.80, a drop of 1.18% throughout the day.
In fact, there were signs of breakage before the 9th. Before the listing transaction, the two dark trading markets of Yaocai Securities and Huili Exchange opened the trading price of Xiaomi's dark disk at HK$16, which was lower than the IPO price of HK$17 determined by Xiaomi. The final two markets were closed to IPO. Pricing fell by 4.7% and 5.3%.
For the break, Lei Jun said that Xiaomi IPO started from a low point, not necessarily a good thing. “We still have to do a good job in the company, to do business as the core”.
How the break will affect Xiaomi has become the topic of greatest concern to investors. An analyst holding Xiaomi's stock said, “From an institutional perspective, the current valuation is reasonable, and if it is long-term development, it is worth looking forward to”. But more institutional investors are more pessimistic, and bearishness is more than bullish.
At present, investors in Xiaomi are mainly concentrated in three categories. Short-term investors sell for breaks and follow the principle of speculative trading. Financial investors pay more attention to business performance and growth potential, while institutional investors pay more attention to management. The latter two will observe the value of millet from a long time and will leave some time to wait and see.
On July 9th, an analyst holding a stock of Xiaomi before the knockout said that the first day of breaking did not affect long-term value, and that it was a good situation.
The above-mentioned analysts holding Xiaomi stocks told the media that once Xiaomi breaks, he can entrust the underwriters to re-sell in the market, which will stabilize the stock price. The green shoe system will stabilize Xiaomi's stock price for a period of time. But after the close, a Hong Kong stock investor told reporters that the green shoe mechanism did not seem to start.
2 Lei Jun holds a stock market value of 15 billion US dollars
The first day of the listing of Xiaomi was HK$16.80, corresponding to a total market value of HK$375.9 billion (approximately US$47.9 billion).
According to the disclosure of the prospectus, according to Lei Jun's shareholding ratio of 31.41%, the market value of its holding stock is about US$150.45 million, which is about US$2.01 billion higher than the market value corresponding to the issue price of HK$17/share.
Among the millet executives, Lin Bin holds a maximum of 13.33%, Li Wanqiang holds 3.24%, Hongfeng holds 3.22%, Liu De holds 1.55%, and Wang Chu holds about 1.12%. In other words, Wang Chuan, who has the least shareholding, will also be worth about 540 million US dollars, while the highest Lin Bin will reach 6.39 billion US dollars.
After the opening, Lei Jun said in an interview, "In the past week, I thought everyone invested in us, in case it fell ugly, how to go out and see people." But this week, especially in the past one or two days, he began to think that IPO is a new beginning from a low point, not necessarily a good thing.
Lei Jun described that Xiaomi’s roadshow was very hot. Many investors kept looking for the Lei Jun to make a quota, but in the last one or two days, they encountered pressure. After completing the roadshow pricing, the pressure really began, because the three major stock markets fell every day. The heart is broken.
For the border of Xiaomi, Lei Jun said that there must be a border. “I have set three principles: the same user overlay; all on the core retail platform of Xiaomi E-commerce, do not engage in new channels; have the ability to do it”. He revealed that Xiaomi increased by 85.7% year-on-year in the first quarter, “this large-scale growth has never been seen before”.
3 Xiaomi futures options are introduced, allowing "short"
On the first day of the listing of Xiaomi, the HKEx launched Xiaomi Futures and Options, allowing the market to “short”, which is not common in the Hong Kong stock market. Previously known as the Hong Kong stocks "four unicorns", the reading group, Zhongan Online, Yi Xin Group, Ping An good doctor, did not launch option futures on the first day of listing.
In this regard, Hong Kong Exchange Chief Executive Li Xiaojia said that the first day of Xiaomi's listing of Xiaomi's derivatives, intended to cut the market to Pinggu, to meet the needs of different investors, not to fall sharply and violently. In the past, Hong Kong history only did this for two companies.
Li Xiaojia further explained that such derivatives were made at ICBC (ICBC) and AIA (AIA). “This is not to say that there is anything special about a company. The key to this company is that the size of such a company is large enough, and the market is interested in its interest.”
Li Xiaojia revealed that the HKEx's judgment on Xiaomi Group is estimated to attract a large number of transactions on the first day, and the transaction itself has considerable depth. Investors have sufficient interest and risk control can withstand it. I hope that this product transaction will be active, and it will be able to meet different needs of investors with different orientations.
Earlier on the evening of July 4, the Hong Kong Stock Exchange announced that the first Xiaomi Group, a company listed under the new voting mechanism in Hong Kong, will be listed on the Hong Kong Exchanges and Clearing Limited on July 9, 2018. (Hong Kong Stock Exchange) market listing transactions. Xiaomi's listing day will provide investors with a variety of product choices: Xiaomi Futures and Options, Xiaomi Derivative Warrants, and a list of approved short-selling designated securities.
4 Li Xiaojia responds to the break of Hong Kong stocks
Recently, more and more companies have gone public in Hong Kong, including star companies such as Xiaomi, Meituan and Huaxing Capital. In the first half of this year, the number of IPOs in Hong Kong has reached the top in the world, and 200 of them submitted their declarations to the Hong Kong Stock Exchange, an increase of 65.29%.
However, another piece of data from the HKEx is also amazing. According to Wind statistics, as of June 30, among the Chinese companies listed in Hong Kong in the first half of 2018, 13 companies fell below the issue price on the first day of listing, accounting for 68.42%.
In the face of the recent break-up of new shares listed in Hong Kong, Li Xiaojia, chief executive of HKEx, said on July 9 that “regulators cannot say which company is good or not, and the exchange serves two people. And the use of money. ”
Regarding the market's doubts about the excessive issuance of tickets to the HKEx, investors have no guarantees, Li Xiaojia said, “We never want to find out how many companies are listed, nor do we pursue the momentum of quantity. The way to trade is that you are willing to come, and it is also a non-discrimination.
Regarding the tide of listings after the completion of the reform of the first half of the Hong Kong Stock Exchange, whether Hong Kong stocks may usher in bad news in the second half of the year, Li Xiaojia said that there is no good or bad market as long as there is a transaction. The HKEx should be very neutral as an exchange, standing both as an issuer and as an investor.
Millet listing events
On May 3, Xiaomi submitted an IPO application document to the Hong Kong Stock Exchange, which was the first time for Hong Kong stocks to “share the same rights”.
On May 23, when Xiaomi was invited to the market, the subscription price of major investors was about $85 billion.
On June 7, Xiaomi went public on the Hong Kong Stock Exchange and submitted a CDR application.
On June 11, the China Securities Regulatory Commission disclosed the Xiaomi CDR prospectus, and Xiaomi plans to raise $10 billion.
On June 14, Xiaomi updated the prospectus at the China Securities Regulatory Commission to confirm that the base stock corresponding to the CDR of this offering accounted for not less than 7% of the total share capital, and the share of the shares was not less than 50%.
On June 19, Xiaomi announced the postponement of the CDR issuance application.
On June 21, Xiaomi updated its prospectus on the Hong Kong Stock Exchange with an offer price of HK$17-22 and a sale of approximately 2.18 billion shares. It plans to raise HK$48 billion.
On July 4, Xiaomi sold a discount of 5% on institutional over-the-counter transactions, with a transaction price of HK$16.14 and a transaction volume of HK$220 million.
On July 6, the offer price was set at HK$17/share, and the retail subscription ratio was 9.5x; the dark market fell 4.5% at the beginning and the lowest fell to HK$15.50.
On July 8, Lei Jun issued an open letter detailing the three strategies to ensure the company's high growth.
On July 9, Xiaomi officially went public on the Hong Kong Stock Exchange.
Beijing News reporter Yang Lan finishing
Lei Jun: I am afraid of knocking out the new flaws of the Hong Kong Stock Exchange.
At around 7:20 am on July 9, a long queue has been lined up outside the Hong Kong Stock Exchange. The Beijing News reporter entered the Hong Kong Stock Exchange at about 7:35, and nearly 100 people gathered at the venue. As time went on, more and more people gathered in the venue. The reporter was informed that the number of participants in the Xiaomi listing ceremony may exceed 600.
At 8:20, Lei Jun and Xiaomi CFO came to the capital to appear, and the appearance of the two attracted the cheers on the scene. After a short stay, the two went to the guest area. Unlike the usual shirts, jeans, and canvas shoes at the press conference, Lei Jun wore a black suit and an orange tie. This is also the color of Xiaomi LOGO. The executives of Xiaomi who were on the same day wore orange tie tacitly.
Subsequently, Lin Bin, Li Wanqiang and other millet executives passed the media area in turn. After taking photos with a number of guests, Lei Jun delivered a speech. On the 9th, the 13 people who came to drink the millet porridge on the first day of the company came to the scene, and there were 175 representatives of Xiaomi employees.
Previously, the outside world was speculating whether Xiaomi would break. There have been signs of breakage in front of Xiaomi, and the price of the stock has fallen by more than 2% compared with the IPO price of HK$17 per share. At 9:28, Lei Jun re-staged and prepared to knock. Breaking the front of the plate did not seem to affect his mood, with a signature smile on his face. Standing next to him is a loyal rice flour Hong Jun who supports Xiaomi for 8 years. The rest of the millet executives and guests are on both sides.
In the crowd of the scene "10,9,8,7……" neatly counted, the drumsticks in the hands of Lei Jun knocked on the 200 kg weight of the "large version of the bronze cymbals". The copper gong that Lei Jun sounded was specially customized in Shanxi, and the cost was 300,000. After knocking, Li Xiaojia said to Lei Jun, "You knocked the voice too small". Lei Jun said, "You are a new embarrassment, I am afraid to knock you out".
The last time I came to the Hong Kong Stock Exchange, I also went back to the listing of Jinshan 11 years ago. Lei Jun prepared for many years and turned to several places to finally lead Jinshan. 11 years later, Xiaomi's listing road is also ups and downs.
Xiaomi listed refining
Since its establishment, Xiaomi has been in business for 8 years. With the price-performance products as the selling point, Xiaomi has become the beneficiary of the wave of Chinese smartphone replacement, and has built a matching Internet service and IoT ecosystem.
There are two major turning points in the development of millet. First, the sales of Mi 3 mobile phones failed to replicate the first two generations of products, slowing down the speed of Xiaomi's entry into the 4G market, and at this time began to expand beyond the category of mobile phones; the second is the 2016 revenue collapse, different from the past Xiaomi refused to announce sales and sales, and then Lei Jun admitted that the company was expanding too fast.
With the development of new sales channels in 2017, the sales of core products have gradually recovered, driving the expansion of its eco-products. In 2018, Xiaomi, who is developing rapidly, went to the front of the IPO.
Between 54.3 billion and 100 billion US dollars, millet valuation has changed several times
Since the establishment of Xiaomi, it has completed 6 rounds of financing, and its valuation has also been rising. It was once rumored to reach 100 billion US dollars.
Prior to the IPO, Goldman Sachs, Credit Suisse and other institutions gave valuations of $80 billion to $94 billion. However, as the hardware business accounted for more than 90% of revenue, the market re-evaluated its valuation to between 60 billion and 70 billion US dollars.
In June this year, a roadshow material obtained by the reporter showed that the median valuation of the millet stage was about US$62 billion. If the 15% over-allotment option is exercised, the valuation range is between $54.4 billion and $70.3 billion.
In the end, Xiaomi used the lower limit of the issue price range of HK$17 as the issue price, with a market capitalization of approximately US$54.3 billion.
The change in valuation reflects the market's perception of what company Xiaomi is. At this point, Lei Jun has changed and the outside world has changed.
As an apprentice to Apple, Lei Jun wore a black T-shirt and blue jeans at the early press conference, just as Jobs felt at the Apple iPhone conference, so he got the title of "Rebs". But as he will learn from Apple's development model as "software (MIUI) + hardware + Internet services", he began to gradually get rid of the above image and put on a suit.
Before the listing, Lei Jun described Xiaomi as a versatile company with three characteristics of hardware, electricity and Internet.
For valuation, market participants generally believe that it is the result of a multi-party game. The reason for the decline in millet valuation is that the listed unicorn companies are not performing as well, and investors are more rational about the evaluation of unlisted unicorns. In addition, for Xiaomi, what is a company, the cognition is also becoming more rational, and the positioning of mobile phone manufacturers is more in line with Xiaomi's situation.
Taking advantage of opportunities, Xiaomi’s commercial map continues to expand
Recalling the experience of the past week, Lei Jun told the media that he had worried that the stock price would fall ugly. The road show is hot, and investors are asking for quotas. The last three days of the world's three major stock markets have fallen, it is almost two days. Lei Jun said that many people do not understand Xiaomi, Xiaomi is more innovative; Xiaomi is more focused than Amazon, because Xiaomi only makes more than 100 kinds of goods, and Amazon sells more than 100 million kinds of goods.
However, from the history of Xiaomi's development, seizing the opportunity has always been the core skill of Lei Jun. It is generally different from the outside story that seven partners are starting a business. A mobile phone industry analyst told reporters that Xiaomi has inherited Motorola’s withdrawal from China’s supply chain, which was once the most important player in the history of the mobile phone industry. one.
Subsequent stories are even more obvious. In July 2011, Lei Jun announced his entry into the mobile phone industry. The concept of enthusiasts quickly impressed some digital enthusiasts with purchasing power. Three years later, Lei Jun began to expand to ordinary consumers, and rice noodles became a new focus. During this period, Xiaomi quickly cut into the market with a price-performance ratio, but it also lacked the possibility of entering the high-end.
In 2014, Internet mobile phones broke out. In early 2015, Xiaomi began to turn to the Indian market, but it did not really improve until 2017. This year, Apple Samsung was cold and other Chinese manufacturers tactically withdrew, leaving some room for the market. India became a model for Xiaomi's internationalization, and Lei Jun even took the lead in his own hands.
After the listing knocked out, Lei Jun said that the internationalization of Xiaomi was actively promoted. After the European layout, the next step was to refer to the US market.
As an eight-year-old company, Xiaomi currently has 36% of international revenue, Lei Jun said, “may be more than 50% in two years”.
Lei Jun next listed company or Jinshan Office
After the listing of Xiaomi, Lei Jun released a microblog. The photo did not choose the lively knocking scene, but the old photo that was first knocked on the Hong Kong Stock Exchange 11 years ago. At that time, Jinshan Software landed on the Hong Kong main board.
Although not the founder, Jinshan Software is the most important company in Lei Jun's workplace experience, and the first listed company he participated in. Lei Jun still serves as the chairman of Jinshan Software. In October 2003, Lei Jun made up his mind to rewrite WPS software when he had only 30 million yuan on the books. This software has filled the gap in Chinese word processing software.
On the eve of the listing of Xiaomi, Jinshan, the CEO of Kingsoft's Jinshan office, said in an interview that the company plans to list independently this year. If successful, this will be the third listed entity after Kingsoft and its Cheetah Mobile. Office software WPS, as the starting product of Kingsoft, was once the core of the company and even the only business. However, as Microsoft entered China and the rise of the mobile Internet, its main revenue status was replaced by the gaming business.
In the capital market, in 2011, Jinshan Office was separated from Jinshan Software for independent operation. In May 2017, Jinshan WPS issued a prospectus and plans to land on the GEM of the Shenzhen Stock Exchange. The prospectus shows that the actual controller of the company is Lei Jun.
In fact, Xiaomi is the fifth time that Lei Jun is listed by the company with actual controllers. The other four times are Jinshan Software, Happy Age, Thunder Network and Cheetah Mobile. In addition to the listing of the Thunder network, he participated in the listing ceremony of all other companies. In addition to the Jinshan office, the Jinshan company of Leijun will also spin off two listed companies, Jinshan Yun and Xishanju.
The listing of Xiaomi marks the beginning of the realization of the comprehensive assets of Lei Jun’s troops.
Beijing News reporter Liang Chen Ma Wei Yang Wei Intern Tong Beichen Zhao Wei