Xiaomi seeks up to $5.3 billion in jumbo share sale

Xiaomi plans to use the proceeds from the share sale to accelerate its business expansion and invest in research and development to advance technological capabilities, the terms show.

Xiaomi Corp. is planning a share sale that may fetch as much as $5.3 billion, capitalizing on a surge in the company’s stock price to help raise funds to expand is electric-vehicle business.

The Beijing-based company is offering 750 million shares at HK$52.80 to HK$54.60 apiece, according to terms of the deal seen by Bloomberg. That’s a discount of 4.2% to 7.4% versus the stock’s last close in Hong Kong.

Xiaomi is investing aggressively in its nascent EV business to drive growth. It recently increased its 2025 EV delivery target after posting the fastest revenue growth since 2021. As part of its efforts to ramp up production, the Beijing-based company is expanding the size of a planned second electric car factory in the Chinese capital, Bloomberg News reported earlier.

Billionaire co-founder Lei Jun said in 2021 that the company plans to invest $10 billion over the next decade into electric cars.

Xiaomi has more than tripled from a low in August, making it one of China’s most expensive tech stocks. The company has won investors over by duplicating its smartphone success in China’s crowded EV market.

Xiaomi plans to use the proceeds from the share sale to accelerate its business expansion and invest in research and development to advance technological capabilities, the terms show.

The jumbo placement comes weeks after Chinese electric vehicle maker BYD Co. raised $5.6 billion in Hong Kong’s biggest share sale in nearly four years, fueling expectations of a rebound in equity capital markets activity in the Asian financial hub.

Goldman Sachs Group Inc. and China International Capital Corp. are among banks on the deal.