Xiaomi will raise about $5.5 billion in upsized share sale
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China's Xiaomi Corp. has begun selling 750 million shares. In this way, the company plans to raise up to $5.5 billion to expand the production of electric vehicles.
This was reported by Bloomberg.
How much are Xiaomi shares worth
The Chinese smartphone and carmaker is selling 750 million Class B shares at a range of HK$52.80 to HK$54.60, a discount of 4.2% to 7.4% from its closing price on the Hong Kong stock exchange (HK$57 on Monday).
Hong Kong's stock markets are showing strong growth, and Xiaomi's shares have more than tripled since August. The company wants to replicate the success of its smartphones in the electric vehicle sector, so it is actively investing in new factories and technology.
According to the publication's insiders, investor demand matched supply on Monday evening.
The transaction for the sale of shares in Xiaomi Corp. is accompanied by:
- China International Capital Corp.;
- Goldman Sachs Group Inc.;
- JPMorgan Chase & Co.
What is known about the company's financial position
Xiaomi is actively investing in a new direction — electric vehicle production — to drive growth. The company recently reported a nearly 50% increase in revenue in the fourth quarter of 2024 and increased its target for electric vehicle deliveries in 2025 from 300,000 to 350,000 units.
In addition, Xiaomi Corp. plans to significantly expand its own retail network. New stores will soon open in China, and over the next five years, Xiaomi plans to launch another 10,000 Mi Home stores abroad.
As part of its efforts to increase production, the company is expanding the size of its planned second electric vehicle manufacturing plant in Beijing.
Xiaomi Corp. has won investor confidence by replicating its smartphone success in China's crowded electric car market. The company's shares have more than tripled from their August low, making it the best performer on the Hang Seng and one of China's most expensive tech stocks.
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