Xiaomi to raise US$4b in top up placement, convertible bonds offer

China’s smartphone maker Xiaomi Corp. is seeking to raise US$4 billion from a combined share placement and sale of convertible bonds, adding to a war chest aimed at expanding its market share from competitor Huawei Technologies Co.

Xiaomi is selling 1 billion shares in a top-up placement to raise as much as US$3.2 billion, according to terms of the deal obtained by Bloomberg News.

The shares are being offered at HK$23.70 to HK$24.50 each, representing a 6.3 percent to 9.4 percent discount to its closing price of HK$26.15 on Monday.

This is Hong Kong’s largest top-up placement on record, data compiled by Bloomberg show.

Xiaomi is also seeking US$855 million through a seven-year, zero-coupon convertible bond, the terms show. The conversion premium is set at 42.5 percent to 52.5 percent above the reference share price, which will be the offering price of the equity placement.