Chinese tech giant Xiaomi Corp (1810.HK) announced on Tuesday that it has successfully raised $5.5 billion through an enlarged share sale, reinforcing its commitment to scaling up its electric vehicle (EV) production.
The company sold 800 million shares at HK$53.25 each, according to its filing with the Hong Kong Stock Exchange. The final pricing landed near the lower boundary of the HK$52.80 to HK$54.60 range initially proposed to investors, representing a 6.6% discount from Monday’s closing price of HK$57. Xiaomi stated that the funds would be directed toward business expansion, research, and technological innovation.
After establishing itself as a leader in smartphones, smart devices, and home appliances over its 15-year history, Xiaomi entered the EV market last year with the launch of the SU7 sedan. The company recently reported a nearly 50% year-over-year increase in fourth-quarter revenue and revised its 2024 EV delivery goal from 300,000 to 350,000 units.
Xiaomi’s EV division generated 32.1 billion yuan ($4.4 billion) in revenue this year, with over 135,000 SU7 sedans already delivered. Looking ahead, the company plans to begin international vehicle shipments by 2027. To support its growing production targets, Xiaomi has acquired a 52-hectare (128.5-acre) site in southern Beijing to construct the third phase of its automobile manufacturing facility.
Additionally, Xiaomi President Lu Weibing revealed that the company will channel 7-8 billion yuan—approximately a quarter of its 2025 research and development budget of 30 billion yuan—into artificial intelligence.
This fundraising move aligns with a broader trend of Chinese tech firms leveraging favorable market conditions in Hong Kong to secure capital. Investor sentiment has improved following a summit led by President Xi Jinping, signaling a potential relaxation of regulatory oversight that began in 2020. Prior to Xiaomi’s share sale, Chinese companies had already raised $16.8 billion through equity market activities in the first quarter—more than double the amount recorded during the same period last year, according to LSEG data.