Weak debut fot Xiaomi shares

Unprofitable territory?

Millions of shares in Xiaomi Corp. could be in unprofitable territory right from the start. According to the smartphone maker’s prospectus, a total 48,787,104 Series F-1 preferred shares were issued to investors between December 2014 and August 2017. Early backers came into the startup through preferred stock that converts to ordinary shares upon Xiaomi’s IPO. Accounting for splits and adjustments, the preferred stock converts to Class B shares at a cost that’s 18.82 percent below the expected offer price, Xiaomi’s prospectus states, implying a price of HK$15.83 per share.

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