HONG KONG (Reuters) – Chinese smartphone maker Xiaomi Corp’s shares fell 7.1% in Hong Kong trading on Wednesday as the company finalised a $3.91 billion capital raising that included the city’s largest top up placement.
The company said 1 billion shares were sold at HK$23.70 each as part of the top up deal that was carried out overnight. The final price was a 9.4% discount to Xiaomi’s closing price of HK$26.15 on Tuesday.
Trading of Xiaomi’s stock was halted during the morning session before the company released details of the capital raise during Hong Kong’s lunch break, when trading is stopped for an hour.
It had been expected that details of the deal would be announced before the start of the trading day in line with normal market practices.
Xiaomi did not immediately respond to a Reuters request for comment on why the deal was not announced until lunchtime.