Xiaomi raises US$4 billion selling bonds and more shares, in Hong Kong’s biggest top-up fundraising to replenish its financial war chest
- Xiaomi prices share sale at HK$23.70 a share, representing a 9.4 per cent discount to Tuesday close, sources say
- Fundraising is biggest top-up placement in Hong Kong ever
The smartphone maker raised US$3.1 billion selling shares for HK$23.70 (US$3.06) each, the low end of an expected price range, according to people familiar with the matter, declining to be named for discussing matters that are not public. That price represented a 9.4 per cent discount to Xiaomi’s closing price of HK$26.15 on Tuesday.
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The equity placement was oversubscribed, with interest by regional investors, existing shareholders and multi-strategy funds, one of the people said.
The equity allocation was concentrated, with the top 10 investors receiving more than 60 per cent of the book, the person said. On the convertible bond allocation, the top 10 investors accounted for about 65 per cent of the deal, the person said.
Xiaomi shares fell 7 per cent to a 10-day low of HK$24.30 after a half-day trading suspension for its top-up financing announcement, the biggest one-day percentage drop in almost three weeks.
The company’s shares have been among some of the best performing in Hong Kong this year, more than doubling in value since the beginning of the year.