SMARTPHONE and connected device maker Xiaomi plans to raise up to 30 percent of its blockbuster US$10 billion IPO by selling shares on the Chinese mainland while offering the remainder in Hong Kong, said sources with knowledge of the matter.

The Beijing-based company was previously expected to raise as much as US$10 billion from an initial public offering (IPO) of shares in Hong Kong only.

The IPO is set to be the largest listing globally in four years and one of the first in Hong Kong under new rules designed to attract tech listings.

Xiaomi is likely to be among the first overseas-listed Chinese tech firms to seek a secondary listing at home through new Chinese Depositary Receipts (CDRs), the sources said. The CDR portion was likely to account for up 30 percent of its total fundraising size, they said.

The revised plans come as Xiaomi is hoping to get approval from the Hong Kong stock exchange for its IPO in the Asian financial hub later this month, three of the sources said.

The company is working towards a simultaneous offering of Hong Kong shares and CDRs on the mainland in early or mid-July, they said.

A dual listing could set a template for future CDR offerings and help boost Xiaomi’s chances of meeting a US$70 billion-plus valuation target that some analysts and investors see as aggressive.

Xiaomi is looking to sell about 15 percent of its enlarged capital in the combined share sale, implying a fundraising size of about US$10 billion, said the sources.

Xiaomi filed a prospectus for an IPO in Hong Kong last month. The company declined to comment further on its listing plans. (SD-Agencies)