On July 9, 2018, Xiaomi Corporation (stock code: 1810.HK, “Xiaomi”) was successfully listed on the main board of the Hong Kong Stock Exchange (“HKEx”), issuing shares at the price of HK$17 per share, raising funds of USD4.7 billion in total. It was the largest IPO ever implemented by a private company in Hong Kong and the third largest IPO by a technology company in the world, following the IPOs of Alibaba and Facebook. Xiaomi has become the first company listed on HKEx with a weighted voting rights structure. JunHe acted as the PRC legal counsel for the issuer in the IPO project.
Founded in 2010, Xiaomi is a new Internet company with mobile phones, intelligent hardware and IoT platforms as its core business. It insists on providing users with products that are “moving and price-friendly” and is committed to enabling everyone in the world to enjoy a better life brought about by technology. Since its inception, Xiaomi has developed rapidly under the leadership of its founding team led by Mr. Lei Jun. It is currently the world's fourth largest smartphone manufacturer and has the world's largest consumer IoT platform. Its original “triathlon” business model, i.e. hardware + new retail + Internet services, has promoted the rapid popularity and quality improvement of smartphones in China, and lays a solid foundation for the leap-forward development of China’s mobile Internet.
From its official launch to its successful listing, this IPO project took around six months, and it involved demanding legal effort due to the fact that Xiaomi is involved in a wide range of business areas, has a complex structure, and a large number of domestic subsidiaries and assets. JunHe, as the PRC legal counsel to Xiaomi, successfully assisted Xiaomi in obtaining approval and consent from HKEx by rendering high-quality, rigorous and efficient legal services. This included designing the reorganization structure, conducting legal due diligence investigations of its domestic subsidiaries, issuing PRC legal opinions and making detailed explanations and replies with regard to the relevant key PRC legal issues of concern to HKEx. The team provided professional opinions and recommendations to Xiaomi on the legal issues in relation to the VIE structure reorganization, various qualifications and compliance, and adjustments to the overseas shareholding structure as well as foreign exchange registration. The professional attitude of JunHe’s team has won high recognition from the client and other intermediaries.
The leading partners in this project were Mr. XIAO, Wei, Mr. Shi Tiejun, Mr. LI, Zhi and Mr. YI, Yisong, and the undertaking partners were Mr. LI, Zhi and Mr. LI, Ruochen. Partners Ms. SUN, Xiaojia, Ms. LIU, Xin, Ms. CAI, Li and Mr. ZHANG, Yue (Brett) also participated in and contributed professionally to this project.