Xiaomi Denies CEO Lei Jun Reduced Stake Amid $5.46 Billion Share Placement
Xiaomi executives have officially denied speculation that CEO Lei Jun reduced his stake in the company following a massive placement of 800 million shares. Wang Hua, Xiaomi’s PR general manager, clarified on Weibo that the transaction was a standard rights issue involving a "sell old, buy new" mechanism, which does not constitute a reduction in major shareholders' holdings. The placement, completed on March 27 at HKD 53.25 per share, raised approximately HKD 42.5 billion ($5.46 billion) from at least six independent investors. This ranks as the third-largest overnight placement in Hong Kong stock market history. Xiaomi stated the funds will support business expansion, R&D, and general corporate purposes, particularly fueling its electric vehicle division. Financial analysts view the move as a positive signal of investor confidence in Xiaomi's EV prospects, despite short-term stock fluctuations. The financing occurs alongside Xiaomi's aggressive push into the automotive sector, with raised delivery targets for the SU7 model. However, the company also faces scrutiny following a recent fatal accident involving an SU7 vehicle, marking its first major public relations crisis in the auto industry.
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Xiaomi Denies CEO Lei Jun Reduced Stake Amid $5.46 Billion Share Placement
Xiaomi executives have officially denied speculation that CEO Lei Jun reduced his stake in the company following a massive placement of 800 million shares. Wang Hua, Xiaomi’s PR general manager, clarified on Weibo that the transaction was a standard rights issue involving a "sell old, buy new" mechanism, which does not constitute a reduction in major shareholders' holdings. The placement, completed on March 27 at HKD 53.25 per share, raised approximately HKD 42.5 billion ($5.46 billion) from at least six independent investors. This ranks as the third-largest overnight placement in Hong Kong stock market history. Xiaomi stated the funds will support business expansion, R&D, and general corporate purposes, particularly fueling its electric vehicle division. Financial analysts view the move as a positive signal of investor confidence in Xiaomi's EV prospects, despite short-term stock fluctuations. The financing occurs alongside Xiaomi's aggressive push into the automotive sector, with raised delivery targets for the SU7 model. However, the company also faces scrutiny following a recent fatal accident involving an SU7 vehicle, marking its first major public relations crisis in the auto industry.
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