Xiaomi stock bounces back 15% after disappointing IPO

1

Xiaomi’s second day of life as a public company is going a lot better than its first.

Shares in the Chinese smartphone maker jumped as much as 15% in afternoon trading in Hong Kong on Tuesday.

The gain followed Xiaomi’s weak debut Monday when its shares lost as much as 5.9% before ending the day down about 1%.

The company went public in Hong Kong after raising $4.7 billion in the world’s biggest tech IPO since Alibaba’s (BABA) huge New York listing in 2014.

Tuesday’s rally took Xiaomi’s shares comfortably above their issue price of 17 Hong Kong dollars ($2.17).

Related: Xiaomi shares fall in Hong Kong debut

The main reason for the rebound was the announcement that Xiaomi will soon be included in the Hang Seng Composite Index, according to Dickie Wong, head of research at Hong Kong-based broker Kingston Securities.

Daily Deals

Leave a Reply

Notify of
Shyla Ewing
Guest
Shyla Ewing

A conservative is one who admires radicals centuries after they’re dead