Xiaomi Raises USD 5.5 Billion in Share Sale to Boost EV Expansion
- tech360.tv
- Mar 25
- 2 min read
Xiaomi Corp has raised USD 5.5 billion in an upsized share sale as it accelerates its electric vehicle (EV) manufacturing plans.
The Chinese tech giant sold 800 million shares at HKD 53.25 each, according to a statement to the Hong Kong Stock Exchange. Initially planning to sell 750 million shares, Xiaomi increased the offering size during the bookbuilding process.
The final price was near the lower end of the HKD 52.80 to HKD 54.60 range provided to investors. It represented a 6.6% discount to Xiaomi’s closing price of HKD 57 on Monday. The company stated that the funds would support business expansion, research, and technology development.
Xiaomi entered the EV market last year with the launch of the SU7 sedan after focusing on smartphones, household appliances, and smart gadgets for most of its 15-year history.
Last week, the company reported a nearly 50% increase in fourth-quarter revenue and raised its 2024 EV delivery target from 300,000 to 350,000 units. Xiaomi’s EV business generated CNY 32.1 billion (USD 4.4 billion) in revenue this year, with over 135,000 SU7 sedans delivered. The company aims to begin overseas car shipments in 2027.
Xiaomi has acquired a 52-hectare land plot in southern Beijing for the third phase of its auto factory to support its growing production targets, according to Chinese media reports.
Xiaomi President Lu Weibing said last week that the company would allocate CNY 7 billion to CNY 8 billion from its 2025 research and development budget of CNY 30 billion to artificial intelligence.
The share sale is part of a broader trend of Chinese tech firms raising capital in Hong Kong. A recent summit led by President Xi Jinping with top tech leaders signalled a potential easing of government scrutiny on the sector.
Before Xiaomi’s offering, Chinese firms had raised USD 16.8 billion in equity capital market activity in the first quarter, more than double the amount from the same period last year, according to LSEG data.
Xiaomi raised USD 5.5 billion through an upsized share sale.
The company sold 800 million shares at HKD 53.25 each.
Funds will support EV expansion, research, and technology development.
Source: REUTERS
ความคิดเห็น