Xiaomi is a perfect example of how taking a company public can make a select number of shareholders a lot of money, even if the IPO flops.
The stock lost about 30 percent in the six months that followed its Hong Kong debut.
For those who snapped up stock in Xiaomi’s earliest funding round, offloading the shares this week still proved hugely profitable. They paid as little as 1.95 Hong Kong cents for a slice between September 2010 and May 2011. Early holders could have pocketed a 56,823 percent profit if they sold at Tuesday’s close of HK$11.10, without adjusting for stock splits.―Business Standard