An undisclosed investor sold 231 million Class B shares at HK$9.45 apiece, according to people with knowledge of the matter, a 5.1% discount to Tuesday’s close. The placing follows the end of a six-month lockup last week that has allowed early shareholders to sell Xiaomi stock for the first time. The shares fell 2.6% in Hong Kong Wednesday.

Xiaomi was one of the world’s most hyped initial public offerings in recent years, with bankers initially touting a valuation of as much as US$100 billion. The Chinese smartphone maker’s market capitalisation has dropped to about US$30 billion from a high of US$61 billion reached after its 2018 debut — which, by one measure, was the city’s biggest flop ever.

A flurry of off-exchange block trades last week signalled that many had taken the opportunity to offload the stock. A fund backed by billionaire Yuri Milner — one of the world’s most prolific startup investors — also distributed millions of Xiaomi shares to investors, reducing its stake to less than 4.99%. More shares will be unlocked for sale in July following a one-year restriction while controlling shareholders last week said they’d hold on to their stakes for another year.