Xiaomi is one of the few Android manufacturers that’s rapidly expanding its market share in key markets across the globe. It has also set the wheels in motion for its much-awaited IPO that’s expected to value the company at around $70 billion. U.S. chipmaker Qualcomm wants a stake in this company and it sees the IPO as an opportunity to get a piece of Xiaomi. According to a report, Qualcomm is the only foreign cornerstone investor in Xiaomi after the latter secured a $100 million investment from Qualcomm for its IPO.
The South China Morning Post claims to have seen a term sheet which reveals Qualcomm’s $100 million investment in Xiaomi. The company’s IPO is expected to value it at $70 billion.
The cornerstone investors will lock in their investments in Xiaomi for six months after the IPO. Qualcomm is the only foreign player among Xiaomi’s seven cornerstone investors, according to the report.
The two companies already have a relationship given that Qualcomm’s chips are widely used inside Xiaomi’s mobile devices. It has been supplying chips to Xiaomi since 2011. Xiaomi will be going public through a listing in Hong Kong. it’s offering 2.18 billion shares at HK$17 to HK$22 apiece. It’s reportedly going to use 30 percent of the proceeds from the IPO for research and development of new products.