Xiaomi has never been lethargic, be it on mobile devices or electric vehicles, and it comes with big finances in 2025. In a big move to grow, Xiaomi is raising $5.27 billion through a top-up placement, according to a term sheet seen by Reuters. The sale is taking place on Monday, marking one of the larger capital-raising efforts undertaken by a Chinese tech company within a recent time frame. This is a sign of commitment to expanding EV ambitions and strengthening their market positions in light of renewed global interest from investors in Chinese stocks.
The shares are being offered at HK$52.80 to HK$54.60 per share, a discount of 4.2% to 7.4% to Xiaomi’s closing price of HK$57 on Monday. Around 750 million Class B shares are being sold to support the offering.
Strategic Utilization of Funds
According to the term sheet, the funding would be used for business expansion, research and technology development investment, and general corporate purposes. Xiaomi has not yet made any public comments about the share placement.
This action comes despite Xiaomi’s efforts to strengthen its EV market footprint. The company started manufacturing electric vehicles last year and is working on ramping up production. It recently raised the 2025 EV delivery target from 300,000 to 350,000.
Wider Market Context
Xiaomi’s latest attempt at raising funds followed a similar path for EV maker BYD, which raised $5.59 billion in what was the largest share sale out of Hong Kong in four years. There has been a strong upturn in equity capital market activity within Chinese firms, with total equity issuance amounting to $16.8 billion during the first quarter of 2025. This is more than double the amount that was seen in that quarter of the previous year, according to LSEG data.
This increased activity is due in part to the diminishing regulatory scrutiny of China’s tech sector and a renewed appetite towards investments forced by the birth of disruptive AI software developers such as DeepSeek. Financial analysts believe that a return of appreciation for Chinese stocks has also prompted global investors to return to this market.
Expansion & Future Market Outlook
Apart from venturing into the electric vehicle space, Xiaomi has now set high objectives for retail network expansion. It would affect how the company intends to penetrate the area of China, and it also promised to open up 10,000 new stores abroad in the Mi Home space in the next five years. The top-up placement is managed by investment banking houses Goldman Sachs, China International Capital Corporation (CICC), and JPMorgan. The statement, which was made positive by the broader condition in equity markets in China, is expected to energize Xiaomi to raise capital through an influx of investor interest.
The new round of funding reflects Xiaomi’s intensified ambitions to be more than just a smartphone brand in its EV push and retail expansion worldwide. Yet, while this goes on to underscore confidence, it also plunges Xiaomi into greater risk in what is already a highly competitive and regulatory environment. As China’s tech sector sees renewed interest from investors, Xiaomi must execute its expansion plans flawlessly to defend this fundraising effort. Otherwise, this bold bet could turn into an expensive misstep.
