Xiaomi Raises $5.27 Billion in Share Sale to Fuel Expansion

Chinese tech giant Xiaomi Corp is raising a substantial $5.27 billion through a top-up share placement, Reuters reports. This move comes as the company seeks to expand its operations, including its burgeoning electric vehicle (EV) business.

The share sale, priced at HK$52.80 to HK$54.60 per share, represents a 4.2% to 7.4% discount to Xiaomi's Monday closing price of HK$57. The company plans to utilize the funds for business expansion, research and technology development, and general corporate purposes.

This latest capital raise follows a significant $5.59 billion raised by EV manufacturer BYD earlier this month, marking Hong Kong's largest share sale in four years. Xiaomi's move also coincides with a recent surge in equity capital market deals by Chinese firms in the first quarter of 2025. Total equity issuance from Chinese companies during this period reached $16.8 billion, more than double the amount seen a year earlier.

This renewed investor appetite for Chinese stocks is attributed to easing government scrutiny of technology majors and the emergence of innovative AI software developers like DeepSeek, according to bankers and advisors.

Goldman Sachs, CICC, and JPMorgan are acting as managers for Xiaomi's share placement.

The news comes on the heels of Xiaomi's impressive fourth-quarter results, which saw a near 50% jump in revenue. The company has also raised its target for EV deliveries this year to 350,000 units. Xiaomi is further expanding its retail presence both in China and internationally, aiming to open 10,000 new Mi Home stores overseas over the next five years.