HONG KONG (Reuters/IFR) - Chinese smartphone and connected device maker Xiaomi plans to raise up to 30 percent of its blockbuster $10 billion IPO by selling shares in mainland China while offering the remainder in Hong Kong, said people with knowledge of the matter.

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The Beijing-based, Cayman-domiciled company [IPO-XMGP.HK] was previously expected to raise as much as $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 the city 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 people 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 people said.

The company is working towards a simultaneous offering of Hong Kong shares and CDRs in mainland China 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 $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 $10 billion, said the people.

Xiaomi filed a prospectus for an IPO in Hong Kong last month.

The company declined to comment further on its listing plans. The people declined to be identified because the deal details are still confidential.

Xiaomi’s listing time frame is however contingent on regulatory change, as China’s securities regulator has yet to finalise CDR rules following the end of a consultation period on June 3.

The regulator had planned to implement the rules by the end of June but the process could take longer as a result of disagreement with would-be issuers over key details, such as disclosure requirements.

Under the tentative timetable, Xiaomi plans to price its Hong Kong and China share offerings on the same day and begin trading in China a day before its shares float in Hong Kong - in early or mid-July - said the people.

Listing in China by selling CDRs will allow Chinese companies domiciled and listed overseas to make their shares available on the domestic market. Other firms planning such issuance include U.S.-listed Alibaba Group Holding Ltd and JD.com.

Citic Securities is leading Xiaomi’s CDR issue, the people said. Citic did not respond to a request for comment.

CLSA, Goldman Sachs and Morgan Stanley are joint sponsors for the listing in Hong Kong.