Investing.com-- Shares of Xiaomi (OTC:XIACF) Corp (HK:1810) fell sharply on Tuesday after the Chinese tech giant announced a HK$42.5 billion ($5.5 billion) upsized share sale, aimed at funding business expansion and research initiatives.
The company placed 800 million shares at HK$53.25 each, marking a 6.6% discount to Monday’s closing price of HK$57.
Hong Kong-listed shares of the company fell as much as 6.6% to HK$53.25 on Tuesday, and were trading 5.3% down at HK$54 as of 03:44 GMT.
Xiaomi intends to use the proceeds to accelerate growth, bolster research and development, and support general corporate needs.
The share sale comes amid a surge in Xiaomi’s stock, which has more than tripled in the past eight months, largely driven by its entry into the electric vehicle market.
The stock has hit a series of record highs this year, aided by recent optimism around Chinese technology stocks with the emergence of DeepSeek AI.
Some of the losses on Tuesday also reflected the broader downturn amid some profit-taking in the tech sector.
Hong Kong’s Hang Seng index was trading 2.2% lower, while the Hang Seng TECH index plunged 3.4%.