n a recent statement from Xiaomi, the company stated that it raised about $5.5 billion in a recent share sale in order to maintain and improve its
continuous efforts to improve the manufacturing processes for the Xiaomi electric vehicles.
According to various sources familiar with the matter, the Xiaomi EV company has sold 800 million shares, priced at HK $53.35 each. It should be mentioned that in the past six months, the Xiaomi Electric Car company has experienced a significant increase in the Xiaomi share price by almost 150%, compared to the initial price of HK $21.5.
Xiaomi redirected its focus toward the electric vehicle industry about a year ago, has since then, the company intended to sell about 750 billion Xiaomi shares. But when the initial public offering was in progress, the company decided to raise even more the Xiaomi share price, and the final stock price rose up to between HK $52.80 to HK $54.60.
As stated by the same source familiar with this process, in the Xiaomi share sale over 200 participants decided to place an order, but the offerings were significantly oversubscribed. But the top 20 investors that participated in the Xiaomi share sale, managed to take about 66% of the Xiaomi stock that was sold in the share sale.
The final price suffered a discount of about 6.6% reaching a Xiaomi share price of HK $57. As the company stated, all the money that was raised in this recent share sale is planned to be used in order to fund the business expansions towards research and development of electric vehicle technologies and manufacturing processes.
Last year, after a long history of selling the company started to manufacture its first Xiaomi electric car, called the SU7 sedan. In the last week’s reports, the Xiaomi EV maker has recorded in the fourth quarter revenue a 50% jump compared with the previous quarter, and also managed to raise the vehicle deliveries target from 300,000 to 350,000.
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Even more so, in 2024 for the overall EV business, Xiaomi reported revenue of $4.4 billion, while being able to deliver more than 135,000 electric vehicles in the SU7 sedan model. In the next years, the company is planning to begin shipping its electric cars overseas.
It remains to be seen if Xiaomi will continue to manufacture the same SU7 sedan or if is it planning to release soon an improved and more advanced version of its electric vehicle.
Stay tuned for more updates!
