Xiaomi Raises $5.5bn In Expanded Share Sale

Xiaomi is expected to raise about $5.5 billion (£4.3bn) in a share sale as it raises funds to expand its electric vehicle (EV) business.

The company, based in Beijing, increased its offering to about 800 million Class B shares, Bloomberg reported, capitalising on a surge in its stock price due to investor enthusiasm about its EV strategy.

The company, best known for smartphones, began selling EVs last year and quickly became one of China’s most popular car brands.

Fund raising

The shares are priced at about 53.25 Hong Kong dollars, a slight discount from the shares’ 57 Hong Kong dollars closing price on Monday, the report said.

The company had earlier planned a sale of 750 million shares, Reuters reported.

The funds are to be used for business expansion, investment in technology research and development, and general corporate purposes, according to the term sheet.

The deal comes after BYD, the world’s biggest EV maker, this month raised $5.6bn in Hong Kong’s largest share sale in four years.

Xiaomi raised its full-year target for EV deliveries to 350,000 units from 300,000 for this year, while reporting a nearly 50 percent jump in fourth-quarter 2024 revenue over the previous year.

EV expansion

The move came after Xiaomi increased its production capacity for EVs and reportedly plans to expand the size of a planned second EV plant in Beijing.

It also said it would expand its store network in China and open 10,000 new Mi Home stores internationally over the next five years.

Total equity issuance from Chinese companies in the first quarter more than doubled over the previous year to $16.8bn, according to LSEG data, as interest in Chinese AI start-up DeepSeek and easing regulation spurred investors’ interest in Chinese stocks.