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Xiaomi Raises $5.5 Billion in Share Sale to Accelerate EV Plans

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Xiaomi Corp, the world’s third-largest smartphone maker, announced on Tuesday that it raised $5.5 billion in an upsized share sale as the company ramps up its electric vehicle (EV) manufacturing plans. The company sold 800 million shares at a price of HK$53.25 each, according to a statement to the Hong Kong Stock Exchange.

Originally planning to sell 750 million shares, Xiaomi decided to increase the size of the offering due to strong investor interest during the bookbuilding process. The final share price, which was at the lower end of the HK$52.80 to HK$54.60 price range, represented a 6.6% discount to Xiaomi’s closing price of HK$57 on Monday.

Investor enthusiasm for Xiaomi’s EV plans has played a significant role in the company’s stock performance, with its share price surging nearly 150% from HK$21.5 in the past six months. The sale attracted over 200 investors, with the book being oversubscribed multiple times. The top 20 investors purchased about 66% of the stock offered.

The funds raised will be used to further accelerate Xiaomi’s business expansion and invest in research and technology development, particularly in the EV sector. Xiaomi entered the electric vehicle market last year with the launch of the SU7 sedan. The company reported a 50% jump in fourth-quarter revenue and raised its target for EV deliveries this year to 350,000, up from 300,000.

Xiaomi’s EV business generated 32.1 billion yuan ($4.4 billion) in revenue in 2024, delivering more than 135,000 SU7 sedans. The company plans to start shipping cars overseas in 2027 and is expanding its production capabilities with a new land purchase for its auto factory in Beijing.

In addition to its EV ambitions, Xiaomi is also focusing on AI, planning to allocate 7-8 billion yuan out of its 2025 total R&D budget of 30 billion yuan to AI development. The share sale comes amid a wave of tech-focused capital raisings from Chinese companies, as positive sentiment around the tech sector grows, partly fueled by easing government scrutiny.

Xiaomi to Raise Up to $5.27 Billion Through Share Sale

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Chinese smartphone and electric vehicle (EV) manufacturer Xiaomi Corp is set to raise up to $5.27 billion through a top-up placement, according to a term sheet seen by Reuters. The company will sell 750 million Class B shares, with a price range set between HK$52.80 and HK$54.60 per share, reflecting a discount of 4.2-7.4% compared to its HK$57 closing price on Monday.

Xiaomi intends to use the funds raised for business expansion, investments in research and technology, and general corporate purposes. The move comes on the back of Xiaomi’s recent success, reporting a nearly 50% jump in its fourth-quarter revenue and increasing its target for electric vehicle deliveries from 300,000 to 350,000 units for the year. Additionally, Xiaomi plans to expand its retail presence, aiming to open 10,000 new Mi Home stores worldwide over the next five years.

This share placement follows a broader trend of Chinese firms engaging in equity capital market deals in 2025, with total equity issuance from Chinese companies reaching $16.8 billion in the first quarter, more than double the amount seen a year ago.

Xiaomi’s offering is being managed by Goldman Sachs, CICC, and JPMorgan.