Xiaomi seeks bank pitches for 2018 IPO

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Kantar analysist Dominic Sunnebo also says that “Chinese brands like Meizu, LeTV, Coolpad, ZTE, and Lenovo were once on the same trajectory as like of Xiaomi, but any momentum they once had has abruptly stopped, with many struggling to get past a 1% share.” He added that Samsungs performance is also going down, grabbing only 2.2% of the market share.

The phone vendor is already talking to investment banks about a possible initial public offering and hopes to raise at least $50 billion from the IPO. But it hasn't been smooth sailing - there are concerns about whether the company can reach the $50 billion level, according to Bloomberg, much less the $100 billion some of its executives are reportedly targeting.

Xiaomi was valued at $46 billion in a 2014 funding round completed before its sales stagnated.

The maker of budget smartphones saw sales stall in 2016 as it attempted to expand internationally while battling intense competition from Chinese rivals Huawei Technologies Co Ltd, Vivo and Oppo. Providers like Huawei, Xiaomi, and others have found great success in markets like China, but the market in the U.S. is tougher due to high dominance from companies like Apple and Samsung. In India, where Xioami's pledged to invest $500 million over the next three to five years, it's on the cusp of beating Samsung for the top spot. Earlier Tuesday, Jun said the Xiaomi Mi 7 would be one of the first devices to use Qualcomm's upcoming Snapdragon 845 processor. The new Redmi Note 4 sold 250,000 units within minutes on Flipkart.com, one of India's most popular retailers.

As per reports from Bloomberg, Xiaomi is likely to choose Hong-Kong as its destination for the IPO.

But if the offering goes forward, Xiaomi would be the biggest tech company to go public since Alibaba raised $25 billion at a $231.4 valuation in 2014.