Xiaomi Shares Slide 6% on HK$42.5 Billion Top-Up Placement

MT Newswires Live03-25

Xiaomi's (HKG:1810) shares were down 6% in Tuesday's afternoon trade after it disclosed plans to raise HK$42.5 billion from a top-up placement.

Lei Jun, the company's founder, CEO, and controlling shareholder, is selling his 800 million shares through Smart Mobile Holdings at HK$53.25 apiece.

The Chinese tech giant will then issue the same number of new shares to Smart Mobile at the same price, according to a Tuesday filing with the Hong Kong bourse.

Upon completion of the deals, Lei Jun's stake in Xiaomi will fall to 23.4% from 24.1%.

Deal proceeds will be used to accelerate business expansion, fund R&D to boost technological capabilities, and support other general corporate purposes.

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