The giant has truly woken and is claiming its rightful place in the scheme of things and in the comity of nations. China in recent times is claiming a lot of first and breaking many strong barriers in various spheres of business and human endeavors; take the case of global trade and the meteoric rise of the Chinese economy which is quite a feat.
In an act that further consolidates their drive and proposed hold on the global economy, China is once again in the news and for this time, it is for the record breaking initial public offer (IPO) which has been credited to the mobile phone and tech giant Xiaomi, which in its IPO, has raised a staggering $100 billion dollars. This IPO offering beats the previous record held by Alibaba which had stood at the No.1 spot for its IPO with a valuation of $25 billion.
In certain circles, a lot of people still don’t know who the tech giants are, while some are still questioning the veracity of their claim and how possible it is to have raised that amount money for a little unknown company. Well, If you didn’t know Xiaomi, they are in your face now and now is the best time to get to know them. The tech giant has been manufacturing phones and mobile technology devices for quite a while now. Their business edge and unique selling proposition is the simple fact that they are manufacturers of high end tech devices, the likes that measure with the best of the better known tech companies and still sell for way cheaper than its competition and at a price the competition may never be able to sell.
The technology industry in China is growing rapidly and this growth is the major driver of this new trend. Not only Xiaomi have made great strides in this industry, other companies like Meicai, an online platform that helps farmers directly sell to small and medium-sized restaurants, has received a $450 million round of financing led by Tiger Global Management.
Some other companies like the Longqi Technology group, one of Xiaomi’s major manufacturers, had their second attempt at an IPO fall through recently and this has been attributed to Longqi mounting pressures of larger orders from their customers and the cash needed to balance their books. Huami, another Xiaomi supplier is also attempting an IPO as well. Xiaomi represents 80% of Huami’s revenues and is a large shareholder in the company.
The beauty of these Chinese companies’ feats is the fact that they have been able to tap into the global financial market while still maintaining sole control over their corporations and their incursion into foreign markets.
The Chinese tech space is growing exponentially and with news coming from the sector, there is the potential for more first and record-breaking feats in the industry. I would suggest you look out for China.