In early trading, shares in the Chinese smartphone maker sank as much as 5.9% from their listing price, which was already at the bottom of the range the company had sought.
But some of them may face a bumpy ride amid volatile markets and escalating trade tensions.
The Sino-U.S. trade dispute has roiled financial markets, including stocks and currencies, and the global trading of commodities from soybeans to coal over the past several weeks.
The stock that was made available to retail investors drew orders represented 9.5 times the shares offered, the company said Friday.
By contrast, China Literature Ltd, the e-book arm of Chinese gaming and social media firm Tencent Holdings, late a year ago raised US$1.1 billion for its Hong Kong IPO amid heavy demand, with the retail portion being 625 times oversubscribed.
The company had also expected to split its listing with another offering on mainland China, but cancelled that.
Founded in 2010, Xiaomi was the fifth biggest smartphone maker in the world previous year, according to research firm IDC.
Enthusiasm for Xiaomi may have waned because investors are holding out for other big Chinese tech IPOs on the horizon, Hong said.
"From day one, we've set up a dual-class share structure".
Despite Xiaomi's challenging debut, Reuters notes that Hang Seng - the Hong Kong stock market index - was 1.7 percent higher. Shares fell as low as HK$16 a share and were recently at HK$16.82. Ping An Healthcare and Technology Co Ltd dropped below its IPO price on the second day of trading in May. The market is always open.
Let us know in the comments if you think Xiaomi will do well in the medium and long term in terms of its stock price.
Xiaomi sold about 2.18 billion shares, making the IPO the largest in the technology sector since Alibaba Group Holding Ltd raised $25 billion in NY in 2014.
But doubts about the sustainability of its business model were among the reasons for the lower valuation, analysts said. The company is also making waves in Europe, where after less than two years in the market, it has become the fourth biggest smartphone seller.
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