Chinese smartphone manufacturer Xiaomi aims to raise $6 billion from its initial public offering on the Hong Kong Stock Exchange on July 9th 2018.

The company had reportedly been planning to generate $10 billion from the listing as recently as just a few weeks ago but has since cut back on those ambitions.

According to CNN Money, the company now aims to sell 2.2 billion shares between around $2.20 to $2.80 each.

The listing could value Xiaomi anywhere between $54 billion to $70 billion - again lower than the $100 billion valuation it had allegedly been chasing previously.

Xiaomi plans to use the money raised to expand its operations globally, as well as invest in research and development to compete better in the highly competitive smartphone manufacturing space.

Pulling back

One key reason for Xiaomi’s smaller than expected IPO is that it has shelved plans to offer shares in mainland China.

It said however it may revisit a listing in mainland China at some point in the future.

Despite a lower than expected valuation, Xiaomi’s IPO would still be the biggest in the world since Postal Savings Bank of China’s listing in September 2016.

Xiaomi’s IPO comes at a time when it reported a loss of $6.9 billion in 2017, despite a rise in revenues of 67.5 per cent to $18 billion. The year prior it had made a profit.

The losses were in part put down to the issuing of preferred shares to investors, as well as its significant investments in countries such as India.