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Xiaomi to Raise Up to $5.27 Billion Through Share Placement
Share Sale Details
- Xiaomi Corporation is raising up to $5.27 billion through a top-up placement.
- The company is offering 750 million Class B shares at a price range of HK$52.80 to HK$54.60 per share.
- The price represents a 4.2% to 7.4% discount from its HK$57 closing price.
- Goldman Sachs, CICC, and JPMorgan are managing the placement.
Purpose of Fundraising
- The funds will be used for business expansion, investment in research and technology development, and general corporate purposes.
Strong Financial Performance
- Xiaomi reported a 48.8% increase in fourth-quarter revenue, reaching 109 billion yuan ($15.1 billion).
- Adjusted net profit surged by 69.4% to 8.32 billion yuan.
- The company increased its 2025 EV delivery target from 300,000 to 350,000 units.
Expansion Plans
- Xiaomi plans to expand its store network in China.
- It aims to open 10,000 new Mi Home stores overseas within the next five years.
Market Trends
- Chinese firms have been actively raising capital, with equity issuance reaching $16.8 billion in the first quarter of 2025—more than double the amount from the previous year.
- The easing of government scrutiny on tech companies and increased investor confidence in the Chinese market are driving capital market activity.
“Xiaomi to Raise Up to $5.27 Billion Through Share Placement”