By Eurasia Business News – December 2, 2020

The smartphone manufacturer closed 7.1% lower at HKSE $24.30 on Wednesday – Photo credit : Pexels

The Chinese electronics manufacturer Xiaomi Corp raised $ 3.1 billion through the sale of shares at the Hong Kong stock exchange.

The tech giant intends to use the raised funds to replenish working capital, as well as to invest in key markets, Xiaomi said in a statement.

The company also expect to raise $ 889.6 million through the placement of corporate bonds.

Xiaomi stock fell as much as 12% on Wednesday, the biggest intraday loss since its 2018 listing. Since the beginning of this year, the company’s shares have more than doubled in price. The Chinese company grabbed market share from its competitor Huawei when US sanctions deepened, particularly in overseas markets from Europe to India.

The smartphone manufacturer closed 7.1% lower at HK $24.30. That wiped out about $5.8 billion in value from the stock, or almost twice what Xiaomi raised with its top-up placement.

Xiaomi was founded in 2010 and is headquartered in Beijing. The company makes and invests in smartphones, mobile apps, laptops, home appliances, bags, shoes, consumer electronics, smartwatches and smart bicycles. The tech giant is also the third company in the world after Samsung and Huawei to have self-developed mobile phone chip capabilities.

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