Shares in China’s Xiaomi drop after $4bn fund raise

Shares in China’s Xiaomi fell sharply after the smartphone maker raised almost $4bn via equity and debt to fund efforts to capture more global market share as rival Huawei suffers under US sanctions.

Xiaomi sold equity worth HK$23.7bn ($3.1bn) in a follow-on offering in Hong Kong, the company said in a statement to the city’s bourse during the lunchtime trading break on Wednesday.

The shares were sold at a 9.4 per cent discount to the previous day’s closing level and near the bottom of a marketed range.

The tech group brought in another $855m by selling convertible bonds, which give investors the option to swap the debt for Xiaomi shares if the stock climbs by a certain amount.

Xiaomi’s Hong Kong-listed shares initially fell 12 per cent in afternoon trading, before paring losses to be down about 6 per cent.


46%


Year-on-year rise in Xiaomi’s smartphone shipments in the third…

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