The Chinese phone maker, Xiaomi, has apparently selected its international banks for its planned initial public offering. Among those which have been selected to work on the company’s IPO, which could see it receive a valuation of up to $100 billion, are Morgan Stanley, Goldman Sachs Group Inc, Credit Suisse Group AG, and Deutsche Bank AG.
The news comes from a person with direct knowledge of the matter, according to Bloomberg which says that they want to remain anonymous because the details are private. The source said that the final details about the IPO are still in the works explaining that the company is still considering Chinese underwriters and is yet to decide on the timing and location of the share sale.
James Yan, an analyst with Counterpoint Research, said the company’s ability to develop software may be appealing to investors. He said:
“The Chinese smartphone market looks stable for Xiaomi, but expanding sales from ecosystem partners could drive Xiaomi’s valuation. Xiaomi enjoys a big edge as other Chinese vendors lack a well-established software business.”
Xiaomi made its name in China where it has a strong base; from there, it moved into emerging markets such as India and Russia where it is trying to consolidate its position. The firm entered Spain last year and is also looking to enter the U.S. market to compete with the player everyone says the Chinese firm tries to mimic, Apple.