Xiaomi securities fell by 5% after a six-month lockup due to the IPO holding, and the corporation’s market value has decreased by $6.3 billion over the last three days, Bloomberg reports.
On Thursday, January 10, the semi-annual shares lockup of Xiaomi, one of the leading Chinese mobile phone companies, ended. The company’s securities fell in price by 17% at the opening of stock trading in Hong Kong.
Many shareholders began to sell off their assets. Bloomberg made an assumption that this sale was probably influenced by the fact that the owners of the unlocked securities could have acquired them before the official IPO at reduced prices.
Besides, analysts believe that Xiaomi’s revenues could be reduced due to the current state of the mobile phone market, where competitor positions are strengthening.