China's Xiaomi eyes up to $4 billion in stock, convertible bonds offering

The proceeds from the equity placement will be used for business expansion.

China’s No. 2 smartphone maker Xiaomi Corp. is seeking to raise as much as $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 $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% to 9.4% discount to its closing price of HK$26.15 on Monday. It’s Hong Kong’s largest top-up placement on