Huami, Xiaomi’s wearable supplier, wants to raise $ 150 million in IPO

by bold-lichterman

In 2018, Huami wants to take a step forward. For this, the Chinese manufacturer of wearables, these activity trackers that are worn on oneself or that are present in clothes, intends to make its IPO this year. As part of the transaction, Huami plans to raise $ 150 million, according to the document filed by the company with the SEC (Securities and Exchange Commission), the US federal regulator and supervisor of financial markets.

To distinguish itself from the competition, represented by Apple and Fitbit, Huami has bet on a low-cost strategy. The Chinese start-up, founded in 2013, shipped 11.6 million wearables in the first nine months of 2017, placing the manufacturer in the world ranks in its sector in terms of units shipped. To date, the start-up claims more than 50 million users for its wearable connected objects.

Xiaomi, exclusive partner of size to shine internationally

The company is Xiaomi’s only partner when it comes to wearables. Huami provides the smartphone manufacturer with connected bracelets, watches and scales. Thanks to its partnership with Xiaomi, the start-up has become one of the main manufacturers of wearables in the world.

Xiaomi, which is therefore the only customer and distributor of wearables designed by Huami, currently owns 19.3% of the start-up’s total outstanding shares. The latter has entered into an agreement with the Chinese smartphone brand, which grants it the status of the most privileged partner in the world to develop the next Xiaomi-branded wearables. This strategic partnership will end in October 2020. In parallel with Huami’s IPO, Xiaomi is expected to go public in the second half of 2018 as part of a transaction that could value the company around $ 100 billion.