China’s Xiaomi raises $7.4 billion in upsized share sale for EV expansion
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Xiaomi is investing aggressively in its nascent EV business to drive growth.
PHOTO: BLOOMBERG
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HONG KONG – Xiaomi said on March 25 it had raised about US$5.5 billion (S$7.4 billion) in an upsized share sale, as the company capitalises on a surge in the Chinese company’s stock price to help raise funds to expand its electric vehicle business.
The company sold 800 million shares at HK$53.25 each, the company said in its statement to the Hong Kong Stock Exchange.
Xiaomi, the world’s third-largest smartphone maker, which moved into electric vehicle (EV) manufacturing in 2024, had planned to sell 750 million shares but increased the size of the deal while the bookbuilding process was under way.
The final price was towards the bottom end of the HK$52.80 to HK$54.60 price range flagged to investors when the deal launched on March 24.
The price was a 6.6 per cent discount to Xiaomi‘s closing price of HK$57 on March 24.
The offering, which comes weeks after EV giant BYD’s US$5.6 billion fund-raising, builds on wha is shaping up to be a bumper year for share sales in Hong Kong.
After years of slumping, the city’s benchmark stock index is among the world’s best performers in 2025, fuelling optimism for a rebound in deals in the Asian financial hub.
As to Xiaomi, the company is investing aggressively in its nascent EV business to drive growth.
It recently increased its 2025 EV delivery target after posting the fastest revenue growth since 2021.
As part of its efforts to ramp up production, the company is expanding the size of a planned second EV factory in the Chinese capital, Bloomberg News reported earlier.
It comes after the rally in Hong Kong stocks – the Hang Seng Index has gained almost 20 per cent in 2025 – helped attract renewed interest from global investors who had shied away from China deals in the past few years, with expectations running high for more companies to tap the equity markets this year.
Xiaomi shares have more than tripled from their low in August, making them the best performers on the Hang Seng and one of China’s most expensive tech stocks.
The company has won investors over by duplicating its smartphone success in China’s crowded EV market.
The fund-raising can be a long-term positive for the company given the potential for deleveraging, artificial intelligence-related research and development and building out its EV capacity, Citigroup analyst Kyna Wong wrote in a note.
In the short term, though, it will pressure the shares given the dilution, the analyst noted.
Xiaomi’s placement puts Hong Kong on course to have its biggest quarter for share sales since the last three months of 2021, when almost US$16 billion was raised, according to data compiled by Bloomberg.
Prior to Xiaomi, equity deals in Hong Kong including initial public offerings had hit nearly US$10 billion in 2025, more than sevenfold from a year earlier, according to the data.
Xiaomi plans to use the proceeds from the share sale to accelerate its business expansion and invest in research and development to advance technological capabilities, the terms show. BLOOMBERG, REUTERS
