The company is offering 750 million Class B shares at a price range of HK$52.80 to HK$54.60 per share, representing a 4.2% to 7.4% discount from its Monday closing price of HK$57.
Proceeds from the share sale will be allocated toward business expansion, investment in research and technology development, and general corporate purposes, the term sheet indicated.
Xiaomi, which began producing EVs last year, has not yet responded to requests for comment.
The fundraising follows a similar move by EV maker BYD, which raised $5.59 billion earlier this month in Hong Kong’s largest share sale in four years.
Last week, Xiaomi reported nearly a 50% surge in fourth-quarter revenue and increased its 2025 EV delivery target from 300,000 to 350,000 units. The company also announced plans to expand its store network across China and open 10,000 new Mi Home stores overseas within five years.
Xiaomi’s capital raise is part of a broader wave of equity deals by Chinese firms in early 2025. In the first quarter, total equity issuance from Chinese companies reached $16.8 billion, more than doubling compared to the same period last year, according to LSEG data.
Bankers and advisors attribute the renewed investor interest in Chinese stocks to easing government scrutiny of major tech firms and the rise of disruptive AI software developers like DeepSeek.
Goldman Sachs, CICC, and JPMorgan are managing Xiaomi’s share placement.