Xiaomi shares surge after lackluster first day of trade following IPO
Xiaomi surged over 13 percent Tuesday on just its second day of trade following its initial public offering (IPO).
Xiaomi shares closed at 19 Hong Kong dollars ($2.17), above its IPO price of 17 Hong Kong dollars. The rise is a welcome boost for the world’s fourth-largest smartphone maker, which went public Monday and saw its shares fall.
The share price surge came after the company behind the Hang Seng Index, which includes companies like Tencent and China Mobile, said Monday that it would include Xiaomi as one of the constituents on July 23.
It’s a big move that will allow mainland Chinese investors to buy shares of Xiaomi, which is listed in Hong Kong, through the Stock Connect program.