The popular Chinese smartphone and consumer electronics producer Xiaomi is seeking to raise as much as $4 billion from a combined sale of shares and convertible bonds, whereas it’s seeking $3.2 billion from a share placement and $855 million from a seven-year convertible bond, official documents indicate. 

The company intends the use the proceeds from the sale of shares and bonds for business expansion and strategic investments to increase market share, it says. The bond and share sales are being managed by investment banks Credit Suisse, Goldman Sachs, Morgan Stanley, and JPMorgan Chase.

Xiaomi is notably fresh off a quarter wherein it posted a 35% revenue jump over the year and grew its smartphone shipments by 45%, achieving the highest yearly growth rate among the top five smartphone companies globally, according to Canalys. For the quarter (Q3 2020), Xiaomi posted a net profit of $623 million on $11 billion in revenue.

Over the past year, Xiaomi’s stock has noticeably risen nearly 150% as its business has grown significantly. In the third quarter of this year ending September, the company shipped a record 46.6 million phones to consumers globally.

Photo: Xiaomi CEO Lei Jun|World Economic Forum is licensed under CC BY-NC-SA 2.0

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