Xiaomi Corp announced on Tuesday that it has secured $5.5 billion through an upsized share sale, aiming to advance its electric vehicle (EV) manufacturing initiatives.
The company sold 800 million shares at HK$53.25 each, as stated in a filing to the Hong Kong Stock Exchange. This pricing represents a 6.6% discount from Monday’s closing price of HK$57.
See also: Xiaomi’s EV Revenue Surges 72% in Q4, Aims for 350,000 Deliveries in 2025
Initially planning to offer 750 million shares, Xiaomi increased the deal size during the bookbuilding process due to strong investor demand. More than 200 investors participated, with the top 20 accounting for approximately 66% of the shares sold, according to a source familiar with the matter.
Xiaomi intends to utilize the proceeds to accelerate business expansion, research, and technology development. The company entered the EV market last year with the launch of the SU7 sedan, diversifying from its traditional focus on smartphones and household appliances.
See also: Xiaomi EV Raises 2025 Delivery Target to 350,000 Units Amid Production Ramp-Up
In 2024, Xiaomi reported 32.1 billion yuan ($4.4 billion) in revenue from its EV business, delivering over 135,000 SU7 sedans. The company has raised its 2025 EV delivery target to 350,000 units, up from the previously set 300,000.
To support increased production, Xiaomi has acquired a 52-hectare land plot in southern Beijing for the third phase of its auto factory, as reported by Chinese media. Additionally, President Lu Weibing announced plans to allocate approximately 7-8 billion yuan towards artificial intelligence, representing about a quarter of the company’s 2025 research and development budget of 30 billion yuan.
See also: Xiaomi EV Hits 200,000 Deliveries as SU7 Gains Momentum
This share sale contributes to a broader trend of tech-focused capital raising by Chinese firms in Hong Kong, following a summit led by President Xi Jinping with top tech leaders last month, which signaled a potential easing of regulatory scrutiny that began in 2020.
Prior to Xiaomi’s offering, Chinese companies had conducted $16.8 billion in equity capital market activities in the first quarter, more than doubling the amount from the same period last year, according to LSEG data.