BRIEF: Xiaomi to raise $6 billion in share placement

Smartphone maker Xiaomi Corp. (1810.HK) announced on Tuesday that it would place 800 million existing shares and a top-up subscription of new shares for HK$53.25 per share, raising HK$42.6 billion ($5.94 billion). The placement price represents a 6.6% discount from Monday’s closing price of HK$57.

Xiaomi said it will use the proceeds from the sale mainly to accelerate its business expansion and for R&D and other general corporate purposes. The placed shares represent 3.1% of Xiaomi’s enlarged share capital, and founder Lei Jun’s stake in the company will be reduced from 24.1% to 23.4%.

Share of Xiaomi opened down 5.5% at HK$53.85 on Tuesday, slightly above the placement price.

By Lau Chi Hang

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