Euromoney, June 2018
The forthcoming IPO of Xiaomi Corporation – China’s Apple, if you must – is the talk of Hong Kong because it is the first dual-class listing to be allowed on the city’s exchange, but it also serves as a reminder of the inherent ludicrousness of the draft prospectus.
The idea of these brochures is to serve as a guide to the business that is heading for IPO, while cunningly redacting absolutely any reference to there being an IPO.
Thus you end up with a gem like this: “You should read the entire [REDACTED] before you decide to [REDACTED] in the [REDACTED].”
We get why you can’t put in dates and amounts. But surely, when one lodges a draft prospectus with a stock exchange, the cat is out of the bag that you might be hoping to list on it. Euromoney finds the whole thing a bit [REDACTED].