Xiaomi preparing for an IPO in early 2018

Sources familiar with the company’s plans say, Xiaomi’s likely valuation is expected to be $100 billion, if not more.

Sources familiar with the matter have stated, Xiaomi Inc has asked banks to pitch next Friday for an initial public offering in 2018.

In 2014, before the stagnation of its sales, the Chinese company was valued at $46 billion in a funding round. Following the expectations of strong results this year, its valuation is likely to go up northwards.

“It is huge,” said a source who said, a valuation of $100 billion would “not be a crazy number”.

As per two people familiar with the company’s discussions, its valuation is expected to be much more given its expected earnings.

Xiaomi did not immediately respond to a request for comment.

Xiaomi, a Chinese company which makes budget smartphones, saw its sales stall in 2016 as it attempted to expand its footprint in international markets.. It however faced intense competition from its peers, including Vivo, Huawei Technologies Co Ltd and Oppo.

As a result of heightened competition, Xiaomi was forced to pull back from several markets overseas, including, Indonesia, and Brazil.

However, in 2017, it re-launched its sales with renewed vigor in dozens of countries which include Ukraine, Russia, Indonesia, UAE and Vietnam.

As per Canalys, it has overtaken Apple Inc in sales volumes in China and is the fourth-largest smartphone vendor by sales in its home country.

In early November, Xiaomi made its first foray in Europe, in Spain, as it tries to revive its stalled global push into developed markets such as the U.S. and Europe.

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