Xiaomi Stock: $5.3 Billion Raise Fuels EV Ambitions

Xiaomi is planning to raise approximately $5.3 billion through an extensive stock sale to accelerate its ambitious expansion into the electric vehicle sector. The Chinese technology giant will offer 750 million Class B shares priced between 52.80 and 54.60 Hong Kong dollars, representing a discount of 4.2 to 7.4 percent compared to recent closing prices. The funds will be strategically allocated to business expansion, research and technology development, and general corporate purposes. This capital raise comes as Xiaomi increases its electric vehicle delivery target from 300,000 to 350,000 units for 2025, highlighting the company's strengthened ambitions in the e-mobility sector. The financing initiative follows impressive financial results, with Xiaomi reporting a nearly 50 percent revenue growth in the previous quarter, with earnings per share climbing from 0.20 to 0.39 Hong Kong dollars.

Market Response Remains Positive

Anzeige

Sollten Anleger sofort verkaufen? Oder lohnt sich doch der Einstieg bei Xiaomi?

Despite the planned capital measure, investors have responded favorably to the news. Xiaomi shares rose by 1.1 percent to 6.61 euros in Frankfurt trading, even reaching an intraday high of 6.82 euros. This performance is particularly noteworthy in a broader context, as the stock currently sits just 12 percent below its 52-week high of 7.40 euros while having recovered an impressive 74 percent from its 52-week low of 1.69 euros. Analysts project earnings of approximately 1.30 CNY per share for the current fiscal year, with the next quarterly report expected on May 21, which should provide further insights into the effectiveness of Xiaomi's expansion strategy.