China’s No. 2 smartphone maker Xiaomi Corp. has raised US$4 billion ($5.36 billion) from a combined share placement and sale of convertible bonds, adding to a war chest aimed at expanding its market share from competitor Huawei Technologies Co.
Xiaomi has sold 1 billion shares in a top-up placement at HK$23.70 ($4.09) each, the bottom of the range, to raise US$3.1 billion, according to terms of the deal obtained by Bloomberg News. That represents a 9.4% discount to its closing price of HK$26.15 on Monday. It’s Hong Kong’s largest top-up placement on record, data compiled by Bloomberg show.
Xiaomi has also fetched US$900 million through a seven-year, zero-coupon convertible bond at a conversion premium of 55% above the reference share price, which is the offering price of the equity placement, the terms show.