Chinese smartphone and electric vehicle maker Xiaomi Corp is raising up to $5.27 billion in a top-up placement. The shares are being sold in a price range of HK$52.80 to HK$54.60, which reflects a discount of 4.2-7.4% from the company's HK$57 closing price.
The company, which began manufacturing electric vehicles last year, is offering 750 million Class B shares. The funds raised will be allocated for business expansion, investments in research and technology development, and general corporate purposes.
Xiaomi's recent performance includes an almost 50% increase in fourth-quarter revenue, prompting the company to raise its target for electric vehicle deliveries this year from 300,000 to 350,000. Additionally, it plans to expand its store network across China and aims to open 10,000 new Mi Home stores overseas within the next five years.
This top-up placement is part of a broader trend among Chinese firms engaging in equity capital market deals in early 2025. Total equity issuance from Chinese companies in the first quarter reached $16.8 billion, more than double the amount from the same period last year.
Easing government scrutiny of technology majors and the rise of innovative AI software developers have encouraged global investors to resume investing in Chinese stocks. Goldman Sachs, CICC, and JPMorgan are managing Xiaomi's share placement.