Xiaomi scraps its mainland China share offering plan

FILE PHOTO: The logo of Xiaomi is seen outside the brand's store in central Kiev, Ukraine August 7, 2018. REUTERS/Valentyn Ogirenko/File Photo

HONG KONG (Reuters) – Chinese smartphone maker Xiaomi Corp said on Friday it had scrapped a mainland share offering plan in order to focus on its business development.

The company filed an application for a public offering of China depositary receipts (CDRs) in mainland China on June 2018. Reuters reported that month that Xiaomi had decided to delay the offering until after its shares debuted in Hong Kong.

“Given that the Company is currently focusing on the business development and holds adequate capital, it has decided to terminate the proposed CDR offering,” Xiaomi said in a filing to the Hong Kong stock exchange.

Chinese authorities announced plans in early 2018 to allow CDRs as a means of letting overseas-listed companies sell shares at home, also part of efforts to lure back foreign-listed Chinese tech giants such as Alibaba and Baidu.

(Reporting by Min Zhang and Meg Shen; editing by Emelia sithole-Matarise)

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