Shanghai (China).- Technological firm Xiaomi has launched a share issuance valued at approximately $42.5 billion in Hong Kong ( $5.467 billion / $5.065 billion euros), intended according to local media to finance the expansion of its emerging business in the electric vehicle sector.
The company announced this Tuesday the issuance of 800 million shares, representing 3.2% of its total capital, at a price of $53.25 in Hong Kong ( $6.85 / $6.34 euros) per share, offering a 6.6% discount compared to the closing value of the previous day on the stock exchange.
The announcement made to the Hong Kong Stock Exchange does not specify details, beyond indicating that the funds will be allocated to “accelerate the expansion of its businesses” and to “investments in research and development to advance its technological capabilities”. However, the South China Morning Post suggests that the main purpose is to finance the growth of its electric vehicle segment.
This Xiaomi movement occurs just two weeks after BYD, the world’s leading electric vehicle manufacturer, made a share sale that generated around $5.6 billion.
Since it began producing its first vehicle, the sedan SU7, in 2024, Xiaomi has managed to sell more than 200,000 units, exceeding its initial expectations. The company has increased its sales target by 16% for this year, aiming to reach 350,000 vehicles, in line with the expansion of its production capacity.
Last year, Xiaomi’s electric vehicle division, recognized worldwide for its smartphones and other electronic devices, generated revenues of approximately $4.5 billion.
Coming soon: Xiaomi is preparing to present its first electric SUV, the YU7, in the middle of this year, positioning itself as a potential competitor to the Tesla Model Y.
Xiaomi’s strategy of entering the competitive Chinese electric vehicle market has led to a 252% increase in the value of its shares over the past year, adding a 59% increase only in the first half of the year, despite not planning to launch its vehicles in international markets until 2027.
credits for the images of this post: Deultimominuto.net
