Chinese smartphone maker Xiaomi's listing in Hong Kong has been a disappointment. It fell 6% on opening before recovering, valuing it at about $50 billion. The company is the third-largest listed smartphone maker behind Apple and Samsung. Richard Windsor of Radio Free Mobile says that the smartphone market has been slowing. Bearing that in mind, the market is questioning whether the $50 billion valuation is too much; on fundamentals, the highest figure Windsor’s firm valued it at was $42.6 billion.
In his research note he put Xiaomi’s fair value 20% lower at $33.3 billion on corporate governance concerns.
According to Statistica, 1.54 billion smartphones are sold annually with a sales value of $489 billion, however, shipments did dip slightly in 2017.
Razer, a global gaming hardware company, listed towards the end of last year valued at an ‘extremely expensive’ ten times revenue. It did well on the first day but has since lost 60% of its value.