Xiaomi has also fetched US$900 million through a seven-year, zero-coupon convertible bond at a conversion premium of 55% above the reference share price, which is the offering price of the equity placement, the terms show.
Xiaomi shares had been on a rally this year, rising 146% from a year ago. However, its stock slipped after it disclosed that its internet services revenue had grown at its slowest pace in three years in the September quarter. It grabbed market share from Huawei when American sanctions deepened particularly in overseas markets from Europe to India.
The proceeds from the equity placement will be used for business expansion, investments to increase market share and strategic ecosystem investments, the terms showed.
Credit Suisse Group AG, Goldman Sachs Group Inc, JPMorgan Chase & Co. and Morgan Stanley are arranging Xiaomi’s offering.
