Chinese electronics major Xiaomi is now set to raise as much as $5.27 billion through a top-up placement, a move aimed at expanding its footprint in electric vehicles (EVs) and advancing its research and development (R&D) efforts.
According to a Reuters report, Xiaomi is offering 750 million Class B shares for sale at a price range of HK$52.80 to HK$54.60 per share. This pricing represents a 4.2% to 7.4% discount to the company’s closing price of HK$57 on the Hong Kong Stock Exchange as of Monday. The capital generated from this equity sale is expected to be deployed toward business expansion, developing its tech, and general corporate operations. Xiaomi’s decision to pursue this fundraising comes at a time when Chinese tech firms are increasingly turning to equity capital markets to raise funds.
Xiaomi has been a mainstay in the global smartphone and consumer electronics landscape for years (currently, it competes with the likes of Apple and Samsung, and maintains a market share of 13% in the global smartphone market). Its foray into the EV sector however, is relatively new – its EV-focused subsidiary was launched four years ago, and last year, Xiaomi unveiled the SU7, its first-ever electric vehicle. In addition to this, the firm recently announced that it is raising its EV delivery target for the year from 300,000 to 350,000 vehicles, following stronger-than-expected market demand, and is now focusing on scaling its retail presence. The company has outlined plans to increase its store network across China and aims to open 10,000 Mi Home stores overseas over the next five years as well.
Xiaomi’s fundraising effort comes at a time when Chinese firms have been raising significant amount of capital this year. The renewed investor interest in Chinese tech enterprises is largely attributed to a more relaxed regulatory environment with Chinese government initiating a broad campaign to bring back entrepreneurial confidence, by getting back country’s biggest names, including Jack Ma.
Over the past few years, the Chinese government imposed strict regulatory oversight on big tech firms, which dampened market sentiment. However, in recent months, authorities appear to be easing restrictions, encouraging global investors to re-enter Chinese equity markets. The rise of AI firms like DeepSeek has further boosted confidence in China’s tech sector, as well as prompted institutional investors to reconsider their stance on Chinese tech stocks.
