The smartphone maker was launched 8 years ago.
Xiaomi's IPO raised $4.7 billion at a valuation of about $54 billion - the world's biggest tech or telecom listing since Alibaba raised more than $20 billion in 2014, according to data provider Dealogic.
Xiaomi's IPO valued the firm, which also makes internet-connected home appliances and gadgets, at $54 billion, nearly half the $100 billion it had initially hoped for and below its more recent target of at least $70 billion.
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Still, the performance of Xiaomi was seen as a key test of investor sentiment for what is expected to be a packed IPO calendar in the coming months.
The HK$17 price valued the company at 39.6 times its forecast 2018 earnings, while iPhone maker Apple is trading at 16 times and Chinese social media and gaming giant Tencent Holdings at 36.
"I think short-term stock price is mostly dictated by market conditions".
Lei has even described Xiaomi as a "new species" of company with what he describes as a "triathlon" business model combining hardware, internet and e-commerce services. Analysts said the company had been weighed down by investor concerns about its hefty valuation on the back of an unfolding US-China trade war that poses a huge threat to China's technology companies, as they could find it harder to acquire core technologies from a more hawkish Trump administration.
The company is the first in Hong Kong to sell shares with a dual-class structure since the city changed its rules to allow founders to keep outsized voting rights, although that means the stock won't be included in MSCI's global benchmarks. "Without the innovation of Hong Kong's capital markets, we wouldn't get a chance to go public in Hong Kong", he said.
There could be repercussions for Hong Kong's IPO outlook, Jackson Wong (黃志陽) of Huarong International Securities Ltd (華融國際金融) said, adding that a tepid start for Xiaomi would suggest a weak appetite for new listings in the territory of Hong Kong. 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.