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Xiaomi taps Goldman Sachs for possible $100 billion float

Xiaomi is reaping the rewards of a new business approach after weathering challenges including domestic competition.

By Tom Ball

Xiaomi, the Chinese smartphone maker, could gain a valuation of as much as $100 billion in a newly proposed IPO, with the company selecting Morgan Stanley and Goldman Sachs for sponsorship.

According to Reuters, the IPO is planned to be floated in the second half of 2018 and if the substantial valuation expectations ring true, it could snatch the record for the largest of the year.

Driving forward the IPO ambitions, it is expected that JP Morgan, Deutsche Bank and Credit Suisse are to enter the mix as global co-ordinators, as reported by the Internation Financing Review.

The Chinese company is anticipating positive business trajectory after implementing a new, streamlined business approach. Xiaomi is recovering from a weak point caused by pressure from other Chinese competitors including Oppo.

This positivity has been echoed by bankers, with expectations of significant profit increases as the business plan continues to yield strong results.

Xiaomi found a place in headlines in 2017 when it partnered with Nokia to form a new patent agreement. The industry giants forged a contract that paved the way to allow Nokia to provide network infrastructure equipment geared toward transport solutions, for example. The ultimate goal was to enhance the processing of information across data centre networks.

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Work between Xiaomi and Nokia in 2017 also included bringing a high speed fibre-optic network to Xiaomi data centres. The move was intended to significantly strengthen connectivity in a bid to provide lower latency to customers to tackle bottlenecks.

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Also looking to Goldman Sachs in the pursuit of an IPO recently, Dropbox kept a low profile by secretly filing in the United States. Planning to go public in the first half of 2018, the move is a useful gauge for monitoring the improving financial climate.

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