The Chinese tech company Xiaomi Corp obtained USD 5.5 billion through a share sale expansion which demonstrates its bold EV market entry plan. The company completed its share offering of 800 million shares by selling them at HKD 53.25 each even though its original plan only included 750 million shares.

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The share sale performed on the Hong Kong Stock Exchange demonstrates investors trust Xiaomi's aggressive EV market plans. The concluded share price settlement registered at the diminished end of projected values delivered a 6.6% price reduction versus the Monday market close of the company. Xiaomi will use the investment funds to speed up business development and enhance research activities and technology advancement.

Xiaomi introduced its SU7 sedan in the EV market during its last year of operations while expanding its business sectors. Due to strong fourth-quarter growth Xiaomi decided to boost its EV delivery target from 300,000 units to 350,000 units this year.

Also Read | Xiaomi unveils ultra-fast SU7 electric sports car to compete with Tesla

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In 2024 the EV division of the company earned 32.1 billion yuan (USD 4.4 billion) through the sale of over 135000 SU7 sedans. Xiaomi intends to launch its EV products for international sales beginning in 2027. The acquisition of a 52-hectare Beijing land plot by Xiaomi will enable the expansion of its auto factory through its third production phase.

The Chinese technology giant Xiaomi dedicates 7-8 billion yuan to AI-related research and development projects among its 2025 research and development budget.

The capital increase Xiaomi procured stands as a part of China's rising trend for technology companies to take advantage of Hong Kong's financial opportunities. The tech sector received reduced governmental supervision after President Xi Jinping organized meetings with tech company executives thereby creating a favorable investment environment.

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The first quarter of this year has seen a surge in equity capital market activity by Chinese firms in Hong Kong, with USD 16.8 billion raised, more than doubling the figures from the same period last year. This trend underscores the growing confidence in China's tech sector and its potential for further expansion.