Chinese smartphone and electric vehicle manufacturer Xiaomi Corp is set to raise up to $5.27 billion through a top-up share placement.
The company is offering 750 million Class B shares at a price range of HK$52.80 to HK$54.60 per share, reflecting a 4.2% to 7.4% discount from its Monday closing price of HK$57, Reuters reported.
Proceeds from the sale will be used for business expansion, investment in research and technology development, and general corporate purposes, the term sheet indicated. Xiaomi has yet to respond to requests for comment.
The fundraising move follows a strong financial performance by Xiaomi, which reported nearly a 50% surge in fourth-quarter revenue last week. The company also raised its 2025 electric vehicle delivery target from 300,000 to 350,000 units. Additionally, Xiaomi plans to expand its retail presence, with plans to open 10,000 new Mi Home stores overseas over the next five years.
Xiaomi’s share placement comes amid a surge in equity capital market activity by Chinese firms in early 2025. Data from LSEG shows that total equity issuance by Chinese companies in the first quarter reached $16.8 billion—more than double the amount recorded a year earlier.
The easing of Chinese government scrutiny on technology companies and rising investor interest in the sector, driven by disruptive AI advancements, have contributed to the renewed confidence in Chinese stocks, according to market analysts.
