Xiaomi’s initial public offering (IPO): Where and how to trade it….

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The market loves an IPO and Xiaomi’s initial public offering is one of the biggest to hit the markets this year. Xiaomi plans to IPO on the 9th June with an expected market cap of up to 70bn USD.

Here are the key facts of the Xiaomi IPO:

  • Company name: Xiaomi
  • Ticker symbol: 01810:xhkg
  • Exchange: Hong Kong Stock Exchange
  • Exp. listing date: 9 July
  • Exp. price range: HKD 17-22
  • Filing amount: Up to USD 4.7bn
  • Shares offered: 2.18bn
  • Exp. market cap: USD 53.9-69.8bn

We’ve covered recent high profile IPO’s and placements like Spotify’s direct listing  and how IG’s new share dealing service let’s you access IPOs and how CFD and spread betting brokers also tend to offer a “grey market” on IPOs so traders can speculate on the price of an IPO without actually having access pre-market.

The grey market is either based on the closing price or more recently with Spotify on the closing market cap. You don’t get the advantages of being in at the ground floor like the early stage VC investors. But you do get the change to have a basic long/short punt if you think the broker is misvaluing the company.

However, no such luck with the Xiaomi IPO, no grey market from IG this time. As Xiaomi is listing in Hong Kong it’s a bit too far from home and probably doesn’t have enough off a mass appeal to get new accounts in like Spotify did.

If you remember when the Royal Mail IPO’d Hargreaves Lansdown offered access and had 690,000 of their clients take up an allocation. Hargreaves Lansdown took on 20,000 new clients in the lead up to the IPO.

But how and where can you trade the Xiaomi IPO when it comes to market?

So, you’re out of luck if you want a grey market, but you can get access to the secondary market through Saxo.

Saxo say they: will offer trading on the secondary market from Xiaomi’s first day as a listed company. Its shares will be available for online order entry after the markets close on Friday 6 July (expected listing date of Monday 9 July). 

With Saxo you will be able to trade the Xiaomi share price as soon as it’s listed through CFDs, albeit with limited leverage or 2.5x.

IG, who offer access to around 170 Hong Kong listed shares on their trading platform will be offering CFD trading and spread betting markets on Xiaomi. Although, this is dependent on demand, so if you want to trade it and it’s not on the platform, you can give them a call to request it.

ETX Capital, will probably add it after the main market opens.

Plus 500 have added it to their platform for CFD trading

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Richard started the Good Broker Guide in 2015 and has been a broker for 20 years most recently at Investors Intelligence and previously acting as multi asset derivatives broker at MF Global (Man Financial). Richard started his career working as a private client stockbroker at Walker Crips and Phillip Securities (now King and Shaxson) after interning on the NYMEX oil trading floor in New York and London IPE in 2000.