The surge in investor support has strengthened Xiaomi, the world's third largest smartphone maker, and ambitiously entered the manufacturing of electric vehicles.
Volkswagen support saw the sale of shares of the Chinese company and led to the company raising $5.5 billion.
The company said in a statement to the Hong Kong Stock Exchange on Tuesday that the company sold for HK$53.25 per share. The group's share price has been nearly 150% from HK$21.5 in the past six months, inspired by investors' enthusiasm for the electric vehicle program.
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Xiaomi, which one Move into electric vehicle manufacturing Last year, 750 million shares were planned to be sold, but the scale of transactions during book construction increased.
The final price is the bottom end of HK$52.80 to HK$54.60 marked as investors when the transaction was concluded on Monday.
Xiaomi's stock fell 5.3% in Hong Kong on Tuesday as Hang Seng Index's 2.1%.
A person familiar with the matter told Reuters that more than 200 investors placed orders during the bookkeeping process, and the book was oversubscribed several times.
The person added that the top 20 investors collected about 66% of the shares for sale.
Xiaomi did not immediately respond to a request for comment on transaction statistics.
50% revenue increase last quarter
On Monday, Xiaomi closed at 6.6% at HK$57. Xiaomi said the funds raised will be used to fund the acceleration of its business expansion, research and technology development.
Xiaomi started making electric cars last year, and after the SU7 sedan sold smartphones, household appliances and smart gadgets for much of its 15-year history, it began making electric cars.
It reported nearly 50% of revenue in the fourth quarter of last week, increasing its target for electric vehicle delivery from 300,000 to 350,000 this year.
The company reported revenue of RMB 32.1 billion (US$4.4 billion) in 2024, providing more than 135,000 SU7 sedans. Xiaomi said its goal is to start shipping cars overseas in 2027.
According to Chinese media reports, the tech company has purchased a new land parcel of 52 hectares (128.5 acres) in southern Beijing, and will build a third phase of its auto factory as it strengthens its annual transportation targets.
Lu Weibing said last week that Xiaomi will invest about 700-800 million yuan in its 1225 total revenue of 30 billion yuan in 2025.
Xiaomi’s deal expands technology-focused capital raising for Hong Kong Chinese companies as the company taps into positive sentiment for the tech industry.
Last month’s summit, led by Chinese President Xi Jinping, along with top tech leaders, was widely regarded as a rigorous scrutiny of government scrutiny that began in 2020.
According to LSEG data, Chinese companies conducted $16.8 billion in equity capital market activity in the first quarter, more than double the same period last year.
- Jim Pollard's additional editor Reuters
See also:
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Ford CEO is driving Xiaomi EV and doesn't want to give up
Electric Vehicle Transformation, Has a Deep Impact on Trade, Employment: IMF
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Xiaomi's electric car launch conference sees its market value surpassing General Motors, Ford
Xiaomi EV units help drive past forecasts of Q2 revenue
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