Xiaomi Corp. has launched a share sale aimed at raising up to $5.3 billion, as the Chinese smartphone and electric vehicle maker seeks to capitalize on its surging stock price and meet growing investment demands in its EV business.
The Beijing-based company is offering 750 million Class B shares in a top-up placement, priced in the range of HK$52.80 to HK$54.60 per share, according to a term sheet reviewed by Reuters and Bloomberg. The offering price represents a discount of 4.2% to 7.4% from Xiaomi's Monday closing price of HK$57 on the Hong Kong Stock Exchange.
Investor demand was reportedly strong, with books covered by Monday evening, according to people familiar with the matter. Xiaomi has not yet commented publicly on the offering.
Proceeds from the share sale will be used to support business expansion, research and development efforts, and general corporate purposes, according to the term sheet.
The move follows a series of high-profile equity capital market deals by Chinese firms in recent months. Total equity issuance from Chinese companies reached $16.8 billion in the first quarter of 2025, more than double the level from a year earlier, LSEG data shows. Xiaomi's placement is one of the largest in the region this year, following closely behind EV competitor BYD Co., which raised $5.6 billion earlier this month in Hong Kong's largest share offering in four years.
Xiaomi has been aggressively investing in its electric vehicle unit to diversify its revenue streams beyond its core smartphone business. The company reported a 50% year-over-year surge in fourth-quarter revenue and raised its 2025 target for EV deliveries to 350,000 units, up from the previous estimate of 300,000.
In a bid to scale its EV production, Xiaomi is also expanding plans for a second electric vehicle factory in Beijing. The company's shares have more than tripled since hitting a low in August, making them the best performers on the Hang Seng Index and positioning Xiaomi as one of China's most valuable tech stocks.
The share sale underscores renewed investor interest in Chinese equities, driven by easing regulatory pressures and heightened optimism around the country's AI and EV sectors. The Hang Seng Index has rallied nearly 20% this year, helping to spur a rebound in equity fundraising activity.
Goldman Sachs, China International Capital Corp. (CICC), and JPMorgan Chase & Co. are managing the share sale, according to deal terms. The company also plans to expand its store network across China and open 10,000 new Mi Home stores overseas within the next five years.
