Xiaomi has struck a deal to raise approximately 5.5 billion USD through issuing and selling 800 million shares as part of its strategy to fund its expanding electric vehicle (EV) business.
The transaction, which was scaled up from an initial plan of 750 million shares, will see the new shares account for about 3.2% of Xiaomi’s existing share count and roughly 1.2% of voting rights. Priced at 53.25 CNY (approximately $7.34) per share, the offering comes at a 6.6% discount to the recent closing price of 57 CNY (approx. $7.85).
At least six independent professional institutions or individual investors are slated to receive allocations. In a parallel move, Smart Mobile, Xiaomi’s largest shareholder, has committed to a conditional agreement to purchase an equal number of shares at the same price. Smart Mobile is an investment firm holding a controlling stake in Xiaomi.
The tech giant plans to channel this capital influx into accelerating business growth, bolstering research and development efforts, and addressing other corporate needs. The deal’s closure hinges on meeting specific contractual conditions.
Last July, Xiaomi revealed plans to expand its EV manufacturing capacity by acquiring extensive land near its current EV assembly plant in Beijing’s Yizhuang district. In 2023, the company began producing the SU7, its first electric sedan, and further expanded its EV offerings by launching a high-performance sports car variant of the SU7 in 2024.
