Chinese smartphone maker Xiaomi Corp is aiming to raise up to $4 billion in an equity and convertible bond deal launched in Hong Kong on Tuesday, according to a term sheet seen by Reuters.
The company is selling 1 billion shares in a top-up transaction priced between HK$23.70 and HK$24.50, the term sheet showed.
The range is a 6.3% to 9.4% discount to Xiaomi’s closing price of HK$26.15 on Tuesday.
Xiaomi’s biggest shareholder, Smart Mobile Holdings Ltd, which owns about 27% of the company and is connected to chairman Lei Jun, according to the term sheet, is the selling Class B type shares.
A convertible bond deal to raise $855 million is also underway, according to the term sheet.
Final pricing of the share issuance will take place Tuesday following a global institutional bookbuild.
Xiaomi reported a 19% jump in third-quarter net profit on Nov. 24, as the Chinese smartphone maker’s shipments over the quarter surged by 45.3% from a year earlier.
Xiaomi did not immediately respond to a request for comment.