Xiaomi submits 'world’s biggest' IPO application since 2014

Chinese mainland tech company Xiaomi has submitted its application for an initial public offering in Hong Kong, expected to be the world's biggest IPO since 2014.

According to a file sent to Hong Kong Exchanges & Clearing Limited, Xiaomi has enlisted CLSA, Morgan Stanley and Goldman Sachs as joint sponsors for its listing.

The filing didn't disclose details about the size of its planned offering. However, Xiaomi said the company will use the proceeds received from the IPO to research and develop core products, including smartphones, smart TVs, and laptops, as well as global expansion.

A valuation of at least $70 billion was generally accepted by sponsors, investment banks and potential investors, and it's likely to surpass $100 billion in the short term, sources with direct knowledge of the matter told Chinese business media outlet Yicai.

It could be the biggest IPO since Alibaba's $25 billion debut in 2014, and might be the first IPO when IPO applications under dual-class shares structures were accepted starting April 30.

Xiaomi said its revenue for last year was 114.6 billion yuan, compared with 6.84 billion yuan in 2016 and 6.68 billion yuan in 2015. However, the company posted a net loss of 43.9 billion yuan in 2017, reversing from a profit a year earlier.