Xiaomi Corp founder Lei Jun can finally rejoice after the Chinese smartphone maker’s market value swelled past the $100 billion mark, a figure his company fell far short of when it listed two years ago.
The firm’s stock rallied as much as 9.1% Wednesday to a fresh record in Hong Kong, making it the 13th stock in the city’s benchmark Hang Seng Index to have a market capitalization above $100 billion. It ended the day 7.6% higher with a market value of HK$802 billion ($103 billion).
Xiaomi, which generates the majority of sales from its smartphone business, originally eyed a $100 billion valuation for its initial public offering, people close to the deal said in May 2018. But it was only at half that level upon its debut, and shares traded below the HK$17 offering price for most of its first two years as a public company.
The stock saw its fortunes reverse in August, after it was announced that Xiaomi would be added to the Hang Seng Index. Shares have more than doubled since. Strong sales during China’s “Double 12” shopping festival have helped fuel this month’s 20% stock jump, and a proposal to boost the weighting of companies like Xiaomi in the Hang Seng Index to 8% from 5% could lead to further gains.
Xiaomi in November reported its fastest quarterly sales growth in two years, while earnings beat analysts’ estimates. It remains one of the few major Chinese tech firms to enjoy strong growth abroad while also benefiting from China’s adoption of 5G technology and winning domestic market share from competitor Huawei Technologies Co.