Catenaa, Monday, March 24, 2025- Xiaomi is offering a share sale seeking to raise $5.3 billion to capitalize on the rally around Chinese stocks to expand its EV business, a Bloomberg report said on Monday.
The EV and mobile maker is offering 750 million shares at HK$52.80 to HK$54.60 apiece, according to terms of the deal seen by Bloomberg. A discount of 4.2% to 7.4% versus the stock’s last close in Hong Kong.
Quoting sources, the Bloomberg report said investor demand met the size of the offering by Monday evening.
The offering, which comes weeks after EV giant BYD $5.6 billion fundraising, builds on what’s shaping up to be a bumper year for share sales in Hong Kong.
Terms seen by Bloomberg say that 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.
Xiaomi is investing aggressively in its nascent EV business to drive growth after it increased its 2025 EV delivery target with posting the fastest revenue growth since 2021.
Xiaomi is also planning a second electric car factory in Beijing as part of the plan to ramp up its production.
Xiaomi shares have more than tripled from their low in August, making them the best performers on the Hang Seng and one of China’s most expensive tech stocks.
Data compiled by Bloomberg shows that with Xiaomi’s placement, it puts Hong Kong on course to have its biggest quarter for share sales since the last three months of 2021, when almost $16 billion was raised.
LSEG data shows Hang Seng Index is up 21% this year making it the best-performer among international peers. On a 12-month basis, the index is trading at a 12-month price-to-earnings ratio of 10.5x.
Also, LSEG data showed the total equity issuance from Chinese firms in the first quarter reached $16.8 billion, 119% more than a year earlier.
