Xiaomi seeks up to $4 billion in equity deals- term sheet

Chinese smartphone maker Xiaomi Corp1810.HK 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.

The company said it had taken market share in China and Europe as its rival Huawei Technologies HWT.UL faced U.S. sanctions that have hit its supply chain. Reuters