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Xiaomi Corp has successfully raised $5.5 billion through an upsized share sale, as the tech giant intensifies its efforts in the electric vehicle market, focusing on expansion and innovation.
Lead: In a significant move to bolster its electric vehicle (EV) manufacturing plans, China’s Xiaomi Corp announced on Tuesday that it has raised $5.5 billion via an upsized share sale. The company sold 800 million shares at a price of HK$53.25 each, marking a strategic step forward as it navigates the competitive landscape of the EV industry. This share sale reflects Xiaomi’s commitment to expanding its business beyond smartphones and consumer electronics, and it comes amid growing investor enthusiasm and a rapidly changing market dynamic.
– **Offer Size**: Xiaomi initially planned to issue 750 million shares but increased the size due to strong demand during the bookbuilding process.
– **Final Pricing**: The shares were sold for HK$53.25 each, slightly below the closing price of HK$57 on the previous day, representing a 6.6% discount.
– **Investor Interest**: More than 200 investors participated in the sale, resulting in oversubscription of multiple times, showcasing massive market interest.
Investor Distribution and Market Reactions
– The top 20 investors acquired around 66% of the total shares sold.
– Despite the successful share sale, Xiaomi’s stock prices fell by 5.3% on the day of the announcement, in line with a broader 2.1% decline of the Hang Seng Index.
Xiaomi’s Expansion into Electric Vehicles
– **EV Manufacturing Launch**: Xiaomi began its journey into electric vehicles last year with the launch of the SU7 sedan, further diversifying its portfolio beyond its 15-year legacy in smartphones and smart gadgets.
– **Revenue Growth**: In a report from last week, Xiaomi announced a nearly 50% increase in fourth-quarter revenue, generating 32.1 billion yuan ($4.4 billion) from its EV division and exceeding 135,000 sedan deliveries.
– **Future Plans**: The company aims to ramp up electric vehicle deliveries to 350,000 this year, with plans to begin shipping vehicles overseas by 2027.
Conclusion: With the recent funding, Xiaomi is positioned not only to advance its electric vehicle production but also to invest significantly in research and development, particularly in artificial intelligence, expecting to allocate 7-8 billion yuan from a total budget of 30 billion yuan in 2025. This share sale is part of a larger trend among Chinese tech firms leveraging favorable market conditions to raise capital, signaling renewed investor confidence in the tech sector.
Keywords: Xiaomi, share sale, electric vehicles, investment, stock market, EV manufacturing, business expansion, technology sector, investor confidence.
Hashtags: #Xiaomi #ElectricVehicles #Investment #TechNews #ShareSale #StockMarket
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