(March 24): Xiaomi Corp kicked off a share sale that may fetch as much as US$5.3 billion (RM23.5 billion), capitalising on a surge in the Chinese company’s stock price to help raise funds to expand its electric-vehicle business.

The Beijing-based company is offering 750 million shares at HK$52.80 to HK$54.60 apiece, according to terms of the deal seen by Bloomberg. That’s a discount of 4.2% to 7.4% versus the stock’s last close in Hong Kong.

The offering, which comes weeks after EV giant BYD Co’s US$5.6 billion fundraising, builds on what’s shaping up to be a bumper year for share sales in Hong Kong. After years of slumping, the city’s benchmark stock index is among the world’s best performers this year, fueling optimism for a rebound in deals in the Asian financial hub.

As to Xiaomi, the company is investing aggressively in its nascent EV business to drive growth. It recently increased its 2025 EV delivery target after posting the fastest revenue growth since 2021. As part of its efforts to ramp up production, the Beijing-based company is expanding the size of a planned second electric car factory in the Chinese capital, Bloomberg News reported earlier.

It comes after the rally in Hong Kong stocks — the Hang Seng Index has gained almost 20% this year — helped attract renewed interest from global investors who had shied away from China deals in the past few years, with expectations running high for more companies to tap the equity markets this year.

Xiaomi shares have more than tripled from their low in August, making them the best performers on the Hang Seng and one of China’s most expensive tech stocks. The company has won investors over by duplicating its smartphone success in China’s crowded EV market.

Xiaomi’s placement puts Hong Kong on course to have its biggest quarter for share sales since the last three months of 2021, when almost US$16 billion was raised, according to data compiled by Bloomberg. Prior to Xiaomi, equity deals in Hong Kong including initial public offerings had hit nearly US$10 billion this year, more than sevenfold from a year earlier, according to the data.

Xiaomi plans to use the proceeds from the share sale to accelerate its business expansion and invest in research and development to advance technological capabilities, the terms show.

Goldman Sachs Group Inc and China International Capital Corp are among banks on the deal.

Uploaded by Magessan Varatharaja