This morning, Xiaomi group announced that the companys shares and bonds will be temporarily suspended from 9:01 a.m. on December 2, and all structural products related to the company will also be temporarily suspended from trading.
In response, Xiaomi replied to interface news that it would not comment.
According to a document obtained by the company on December 1, Xiaomi will issue 1 billion additional shares to raise $3.1 billion at a price range of HK $23.7 to HK $24.5, down 9.4% and 6.4% respectively from Mondays closing price of HK $26.15.
Xiaomi also sought to raise $855 million through a seven-year convertible bond, 55 per cent higher than the issue price of the rights issue, according to terms obtained by the company, which will be used to grab market share from rival Huawei.
Xiaomis share price has been rising this year, up 146% from a year ago. In the third quarter of this year, Xiaomi surpassed Apple by 44.4 million units for the first time, ranking third in the world, according to a research report released by Gartner on December 1.
Under the US sanctions against Huawei, Xiaomi is still trying to seize Huaweis overseas high-end market share. This morning, Xiaomi said that it will launch its new Xiaomi 11 mobile phone in 2021.