Xiaomi Seeks $5.3 Billion in Share Sale to Fund EV Expansion

The Beijing-based institution is offering 750 cardinal shares astatine HK$52.80 to HK$54.60 apiece, according to presumption of the woody seen by Bloomberg. That’s a discount of 4.2% to 7.4% versus the stock’s past adjacent successful Hong Kong.

Investor request met the size of the offering by Monday evening, according to radical acquainted with the matter, who asked not to beryllium identified due to the fact that they’re not authorized to talk publically astir the matter.

The offering, which comes weeks aft EV elephantine BYD Co.’s $5.6 cardinal fundraising, builds connected what’s shaping up to beryllium a bumper twelvemonth for stock income successful Hong Kong. After years of slumping, the city’s benchmark banal scale is among the world’s champion performers this year, fueling optimism for a rebound successful deals successful the Asian fiscal hub.

As to Xiaomi, the institution is investing aggressively successful its nascent EV concern to thrust growth. It precocious accrued its 2025 EV transportation people aft posting the fastest gross maturation since 2021. As portion of its efforts to ramp up production, the Beijing-based institution is expanding the size of a planned 2nd electrical car mill successful the Chinese capital, Bloomberg News reported earlier.

It comes aft the rally successful Hong Kong stocks — the Hang Seng Index has gained astir 20% this twelvemonth — helped pull renewed involvement from planetary investors who had shied distant from China deals successful the past fewer years, with expectations moving precocious for much companies to pat the equity markets this year.

Xiaomi shares person much than tripled from their debased successful August, making them the champion performers connected the Hang Seng and 1 of China’s astir costly tech stocks. The institution has won investors implicit by duplicating its smartphone occurrence successful China’s crowded EV market.

The fundraising tin beryllium a semipermanent affirmative for the institution fixed the imaginable for deleveraging, artificial intelligence-related probe and improvement and gathering retired its EV capacity, Citigroup Inc. expert Kyna Wong wrote successful a note. In the short-term, though, it volition unit the shares fixed the dilution, the expert noted.