Blitz Bureau
Chinese smartphone and EV maker Xiaomi Corp, is raising up to $5.27 billion in a top-up placement, according to a term sheet seen by Reuters.
The shares are being sold in a HK$52.80 to HK$54.60 price range, the term sheet said.
The company, which began manufacturing electric vehicles (EVs) last year, is selling 750 million Class B shares and the price range represents a 4.2-7.4 per cent discount to the company’s HK$57 closing price on March 24.
The money raised is earmarked for business expansion, investment in research and technology development and general corporate purposes, the term sheet said.
Xiaomi did not respond immediately to a request for comment.
EV manufacturer BYD this month raised $5.59 billion in Hong Kong’s largest share sale in four years.
Xiaomi reported last week an almost 50 per cent jump in fourth-quarter revenue and raised its target for electric vehicle deliveries this year to 350,000 from 300,000.
The company also said it planned to expand its store network across China this year and open 10,000 new Mi Home stores overseas in the next five years.
Xiaomi’s top-up placement adds to a recent rush of Chinese firms’ carrying out equity capital market deals in the first few months of 2025.
Total equity issuance from Chinese firms in the first quarter reached $16.8 billion, more than double the amount seen a year earlier.
Easing Chinese government scrutiny of technology majors and the emergence of disruptive AI software developer DeepSeek have prompted global investors to begin investing in Chinese stocks again, bankers and advisors said. Goldman Sachs, CICC and JPMorgan are managing Xiaomi’s share placement.
