The Chinese smartphone giant–and the world’s fifth biggest smartphone maker–went public on the Hong Kong Stock Exchange on Monday, reports CNBC. While the company had hoped to raise enough funds to value it at $100 billion, Xiaomi only raised $4.7 billion from the IPO, giving the company a total valuation of $54 billion.
So why did Xiaomi’s IPO flop? Some analysts say the share price offering of HK$17 ($2.17) was too high a valuation multiple for the company compared to its competitors like Apple, making the stock too expensive from the onset. Others say the ongoing trade war between the U.S. and China has spooked investors from putting money in Chinese companies. While Xiaomi does not sell its products in America at the moment, the company has said it plans to before the end of next year. But with the trade war, it’s uncertain the company will be able to expand into the American market it desperately needs for growth.