Xiaomi Corp‘s market value has just crossed the 100 billion US Dollar mark. The company has finally reached its IPO goal set in 2018, which it had failed to achieve back then.

According to a Bloomberg report, the Chinese tech giant’s market value cross 100 billion US dollars after it rallied as much as 9.1 percent earlier this week in Hong Kong. This marked a new record for the company and even made it the 13th stock in the city’s Hang Seng Index to have a market capitalization that was over 100 billion US Dollars. The company ended the day 7.6 percent higher, with a market value of 802 billion Hong Kong Dollars (roughly 103 billion US Dollars).

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Back in 2018, Xiaomi had aimed at a 100 billion US Dollar evaluation for its initial public offering. Although, the company had managed to achieve only half of that original goal upon its debut. Since then, the company has seen great success across the globe, especially in 2020. The news arrives after the smartphone maker saw strong sales with its shares having nearly tripled in 2020 after its post IPO struggles.

In November 2020, Xiaomi had reported its fastest quarterly sales growth in two years. These earnings had surpasses analysts’ expectations as the company remains one of the few Chinese tech firms that are able to see strong growth outside of its home country China. At the moment, the brand is also benefitting from China’s rollout of 5G technology, while also taking advantage of Huawei‘s current situation to take over its domestic market share as well.

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Xiaomi has made a less than impressive start on the Hong Kong stock market after its stock dropped on the first day of trading. The company’s shares fell below 2% of the IPO listing price today, after trading at just HK$16.60 (US $2.12) instead of the listing price of HK$17 (US $2.17). In comparison, Hong Kong Exchange’s Hang Seng Index (HSI) was up by around 1.5% today.

It’s clearly not the start that Xiaomi would have hoped for. The company had priced its IPO at $17, the lowest figure in its range of $17-$22 that it had set earlier. Xiaomi reveals that it managed to raise around HK$23.97 billion, which comes to around US $3.05 billion. This IPO valued the company at around $54 billion, much lower than earlier expectations. A while back, there were rumours about an $80 billion valuation too, so this figure is indeed quite low.

Xiaomi’s less than impressive start could be attributed to investors sentiments towards the company’s valuation figures and its ability to generate profits. Although Xiaomi calls itself as an internet company, many analysts believe that it is still a hardware company. Further, majority of the company sales is concentrated on the low-end market where there is very little room for profits.

Another big reason for Xiaomi’s bad start could be because of the rising tensions between China and the US. Stocks in Hong Kong and Shanghai have taken hits with the former market’s benchmark index falling by over 10% as compared to early June. So the macroeconomic condition wasn’t really favourable for an IPO of a big company like Xiaomi.

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Xiaomi’s IPO takes the total to $7 billion in new offerings in Hong Kong this year. The company became the first one to list under the new rule that permits dual class of shares on the Hong Kong market.

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