Xiaomi on the hunt for IPO sponsors, with CLSA, Goldman Sachs and Morgan Stanley tapped

Chinese smartphone maker Xiaomi has reportedly tapped Morgan Stanley, CLSA and Goldman Sachs as joint sponsors for its proposed IPO, thought to be occurring in the second half of the year. The initial public offering is predicted to be the biggest technology float of the year, with the company expected to be valued at up to $100bn (£72.5bn).

According to Reuters, which cited people with direct knowledge of the matter, Xiaomi has also separately tapped Deutsche Bank and Credit Suisse to work on its IPO, although the roles for global banks have yet to be decided, and no formal mandate has been given to any Chinese bank.

Last month, the smartphone manufacturer reportedly told banks pitching for the IPO that it was expecting to exceed revenue targets for 2017 by as much as 18 per cent, with sales of between $17bn and $18bn. The revenue growth would represent a significant recovery for the firm, which has seen sales slump in recent years following attempts to expand beyond its native China. Following its expansion attempts, the company underwent a substantial overhaul, prompted by disappointing international sales and growing domestic competition.

The IPO, which is expected to happen in Hong Kong, could well be one of a series of hotly-anticipated floats by Chinese tech firms this year. Lufax, China’s largest online wealth management platform, is also expected to float this year, according to the South China Morning Post. The company, which is backed by insurance group Ping An, is expected to sell $6bn to $9bn worth of shares, and is seeking a valuation of around $60bn.