Xiaomi Raises US$5.5 in Share Sale to Fund EV Expansion
Xiaomi Pushes Into EV Market with SU7 Sedan
By Kenzie Aryasatya, Fayza Nawra Avanitanya, Muthia Noor Safitri, Imam Fakhri Prayogo Harianto
March 28, 2025 at 16:30 GMT+7
Xiaomi Corporation raised US$5.5 billion in an enlarged share sale, exceeding initial expectations as the top Chinese technology firm took advantage of its rallying stock price. The firm had intended to offload 750 million shares but raised its sales to 800 million shares at HK$53.25 per share because of strong investor demand.
The 6.6% discount sale was offered to Monday's close, participated by more than 200 investors, with 66% of the shares bought by 20 investors. This fundraising effort ranks among the most significant equity sales in Asia in recent years, reflecting growing investor confidence in Xiaomi’s ambitious expansion into the electric vehicle (EV) market.
The company’s stock has surged nearly 150% in six months, reinforcing its position as a key player in China’s evolving tech landscape.
China's Xiaomi joins the crowded EV race | Source: CNN Business
Xiaomi plans to use funds from its most recent stock sale to speed up its EV development, particularly with the SU7 sedan. The Chinese tech firm intends to compete with market leaders Tesla and BYD by incorporating smart features and advanced technology into their EV line-up.
Experts consider this investment vital for boosting production scale and quickening research and development efforts. Xiaomi targets making itself a significant player in the EV market using its background in consumer electronics and artificial intelligence to improve vehicle performance and user satisfaction with the SU7 sedan.
This strategic move supports Xiaomi's more expansive objective of broadening beyond smartphones and solidifying a position as a key player in the global EV industry. Amidst rising competition, Xiaomi will need to focus on innovation and manufacturing enhancements to gain market prominence and establish itself forcefully in the growing EV sector.
Xiaomi 15 series unveiled at the 2025 Mobile World Congress in Barcelona | Source: Reuters
Xiaomi’s stock initially declined as investors reacted to concerns over share dilution following the company’s latest fundraising move. Yet, analysts are optimistic about Xiaomi's future, applauding its strategic diversification into electric vehicles and tech areas.
By expanding into EVs with their SU7 sedan and smart eco-system integration, Xiaomi boosts its global presence. Despite short-term market fluctuations, investing in innovation and emerging technologies offers the potential for sustained growth and competitive advantage.
Industry experts foresee Xiaomi leveraging electronics and AI expertise to secure its spot in the EV sector's evolution. As the company diversifies beyond smartphones, it must amplify production scales and strengthen R&D for investor trust and overall success in the long run.
Source:
Bloomberg
Business Times
Reuters
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