Many Xiaomi Corp (小米) investors, who could only watch as the stock shed US$14 billion in market value, will now be able to join in on the selling.
Expiring today is the six-month lockup period that followed the company’s Hong Kong debut, during which some employees and cornerstone investors were banned from disposing of their allocated shares.
It has been painful: Xiaomi has dropped to HK$11.10 from a listing price of HK$17, sinking 7.5 percent yesterday as JPMorgan Chase & Co gave up its buy recommendation on the stock.
More than 3 billion shares would be unlocked, equal to about 19 percent of those outstanding,data compiled by Bloomberg showed.
Touted by bankers last year as China’s answer to Apple Inc, Beijing-based Xiaomi sought a valuation that would have made it the most expensive smartphone maker in the world.
The stock trades at 17 times projected 12-month earnings, less than half its July multiple.
It is still 44 percent more expensive than Apple, which is reeling from its worst quarterly rout in more than a decade.
Longer-term investors might want to hold on to Xiaomi’s shares rather than dump them at a loss.
Analysts on average still predict that Xiaomi is to rebound to its initial public offering price. Hedge funds have been increasing their bearish bets, with almost 30 million shares sold short yesterday, the most since August.
Xiaomi attracted the likes of China Mobile Ltd (中國移動) and US chip giant Qualcomm Inc as cornerstone investors last year.
The lockup period for some insiders can be as long as 12 months.
Softbank Group Corp plans to keep a stake in the chip designer Arm Ltd, even if it sells a partial interest to Nvidia Corp, the Nikkei reported. The companies are negotiating terms, the newspaper reported, citing sources. Softbank might take a stake in Nvidia after it buys Arm, the report said. Nvidia and Arm might also merge through a share swap, and Softbank would become a major shareholder in the combined company, it said. The two parties aim to reach a deal in the next few weeks, the sources said, asking not to be identified because the information is private. Nvidia is the
END TO SPECULATION: The hotel’s management contract has been extended, despite reports that it wanted to end its alliance with Hyatt Hotels over a deal with Riant Capital Singapore-based Hong Leong Hotel Development Ltd (豐隆大飯店股份) yesterday said it has extended a management contract to ensure the continued presence of the Grand Hyatt brand in Taipei, ending rumors that the two sides were parting ways. “We are pleased Hyatt is able to come to terms on the extension of the management contract of Grand Hyatt Taipei,” said Kwek Leng Beng (郭令明), executive chairman of City Developments Ltd (城市發展) and Millennium & Copthorne Hotels Ltd (千禧國敦酒店). Hong Leong Hotel Development is a subsidiary of Millennium, and both fall under the Hong Leong Group (豐隆集團). The Grand Hyatt Taipei (台北君悅大飯店), owned and built by
Gold surged to a fresh record on Friday, fueled by US dollar weakness and low interest rates, while silver headed for its best month since 1979. Spot bullion is up more than 10 percent this month, as US real yields lingered near record lows. While the ferocity of rallies in gold and silver cooled in the middle of the week, most market watchers predict there might be more gains ahead. Both metals have added about 30 percent this year, with gold and silver exchange-traded funds boosting holdings to a record, as concern about the fallout from the COVID-19 pandemic fuels demand for
MOVING FROM CHINA? The article did not name the company, but Foxconn, Wistron and Pegatron were among firms chosen for a production-linked incentive plan in India An Apple Inc vendor is looking at shifting six production lines to India from China, which could result in US$5 billion of iPhone exports from the South Asian nation, the Times of India reported, citing people familiar with the matter who it did not identify. The establishment of the facility would create about 55,000 jobs over about a year, the newspaper reported, not naming the Apple vendor. It would also cater to the domestic market and expand operations to include tablets and laptops, the newspaper reported. Samsung Electronics Co and Apple’s assembly partners are among 22 companies that have pledged 110 billion