Xiaomi to raise USD 6.1 billion to boost core businesses

Chinese smartphone manufacturer Xiaomi Corp. is looking to raise USD 6.1 billion (PHP 326 billion) through the issuance of 2.18 billion shares in an initial public offering (IPO) in Hong Kong.

Lei Jun

The company announced the plan to have a global offering, composed of 2.07 billion international offering and 109 million Hong Kong public offering, with offer price ranging from HKD 17 to HKD 22 (USD 2.17 to USD 2.80) apiece. 

This move is aimed at financing the group's research and development for its smartphones, smart TVs, laptops, among others; bolster its presence in the internet of things and artificial intelligence technologies; global expansion; and working capital and general corporate purposes.

Goldman Sachs, Morgan Stanley, and CLSA are joint sponsors, joint global coordinators, joint bookrunners and joint lead managers of the global offering.

Lei Jun, Executive Director, Founder, Chairman and Chief Executive Officer of Xiaomi, said this fundraising marks the group's preparation to bring its business to greater heights.

He also stressed Xiaomi continues to witness the strong performance in the market on the back of "maintaining excellent design and outstanding quality in our products."

We believe that the potential of our global business is limited only by our imagination. With our unique ecosystem model, we have mobilized many like-minded entrepreneurs, and we are not only changing industries in China but also elsewhere in the world, the top official said.

Fundamentally, the Internet is all about transparency, efficiency, and equality. We want to allow everyone to enjoy the benefits of technology. That is the goal that all Xiaomi employees and I are working tirelessly for, Lei Jun added.

Given this recent fundraising announcement, it seems like Xiaomi is unstoppable with its vision to lead the global smartphone market.

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