Targeting 350,000 EV deliveries by 2025, Xiaomi raises $5.5 billion in a share sale to accelerate its electric vehicle expansion and raise global shipments by 2027.
Xiaomi Corp has raised $5.5 billion through an upsized share sale in its ambitious push into the electric vehicle (EV) sector. The company sold 800 million shares at HK$53.25 each, according to a statement to the Hong Kong Stock Exchange.
Initially, Xiaomi planned to sell 750 million shares, but the offering size was increased during the book-building process. The final price was close to the lower end of the HK$52.80 to HK$54.60 range, reflecting a 6.6% discount from Xiaomi’s closing price of HK$57 on Monday.
According to Reuters, the funds will be directed towards accelerating Xiaomi’s expansion, particularly in its EV manufacturing business. The tech giant, which is the world’s third-largest smartphone maker, entered the EV market in 2024 with the launch of its SU7 sedan.
Last week, Xiaomi announced a nearly 50 per cent increase in its fourth-quarter revenue and raised its EV delivery target for 2025 to 350,000 units. It also reported $4.4 billion in revenue from its EV business in 2024, with more than 135,000 SU7 sedans delivered.
Xiaomi’s EV ambitions are growing, as the company plans to begin shipping cars internationally by 2027 and has acquired a 52-hectare plot in Beijing for its auto factory expansion.
The company also intends to invest 7-8 billion yuan of its 2025 R&D budget into AI. This capital raising follows a trend of tech-focused funding by Chinese firms, capitalising on the positive sentiment surrounding the sector following signals from the Chinese government easing its scrutiny of tech firms.
The move comes shortly after BYD, a Chinese EV competitor, raised $5.6 billion. Additionally, Xiaomi has been in talks with Samsung Electronics and Qualcomm, potentially forming a partnership to advance automotive electronics.
