Xiaomi selects Morgan Stanley and Goldman Sachs Group for IPO

Briefly about the IPO:

IPO is short for Initial Public Offering. An abbreviation used in the stock market for shares that are being newly listed. Fundamental analysis plays a more important role in their trading, as newly listed shares have no historical price data to analyse.

Major IPOs are preceded by strong publicity to make the issue as successful as possible. In many cases, speculation on the future value of the share is made in advance. IPOs are riskier to trade than older IPOs because they have a history of investor behaviour, share price, etc.

So we'll have more and more news in the future until the release, but we'll also entertain you with products...

According to the latest reports, Xiaomi has selected Morgan Stanley and Goldman Sachs Group for its planned initial public offering (IPO), while Credit Suisse Group AG and Deutsche Bank AG have also been selected to work on the IPO.

The Bloomberg- a report from the Commission refers to direct knowledge of the material. The report also adds that the China-based company is targeting a valuation of $100 billion. Previously, there were rumors that Xiaomi was looking for a $200 billion valuation, but this is highly unlikely.

However, further reports suggest that the company is still considering the Chinese listing and the timing and location of the share sale. Xiaomi's IPO could be the largest IPO since Alibaba Group Holding Ltd.'s $25 billion debut.

Xiaomi was valued at around $45 billion when it last raised a funding round in 2014 and was once named the world's most valuable tech company. A Xioami successfully again in October 2017 reached its annual revenue target of 100 billion yuan ($15 billion) . The company lowered its target by 18 percent and achieved a net profit of $1 billion.

In line with the company's renewed strategy, Xiaomi is now looking to establish its presence in the offline market. After opening more than 300 Mi Stores in China, the tech giant will open more than 1,000 physical stores in various Chinese cities by 2020.

There are also reports suggesting that Xiaomi is also planning to enter the US market and is currently negotiating with some network carriers to sell its flagship devices from this year. While the company is in talks with AT&T and Verizon, there is no assurance that a deal will even be struck.