Xiaomi Vice Chair Seeks Up to $1 Billion in Stake Sale
Lin is selling 350 million shares, or 1.5% of the total issued share capital, at HK$22.55 to HK$22.85 each.
(Bloomberg) -- Xiaomi Corp. Vice Chairman Lin Bin is seeking as much as $1 billion from the sale of a stake in the Chinese smartphone maker, capitalizing on a stock surge that sent its shares to all-time highs.
Lin is selling 350 million shares, or 1.5% of the total issued share capital, at HK$22.55 to HK$22.85 each, according to terms of the deal obtained by Bloomberg. The price range represents a discount of 2.97% to 4.25% to Monday’s closing price of HK$23.55.
The smartphone maker’s shares have surged 118% this year and hit a new high of HK$25.70 earlier this month after the company reported profit more than doubled in the second quarter. Meanwhile an electric vehicle maker that Xiaomi invested in has risen 27% since it went public in New York.
Lin will be subject to a five-year lock-up period after the sale, an unusually long period for shareholders selling stakes. He holds a 2.2% stake in Xiaomi, according to data compiled by Bloomberg.
Goldman Sachs is the sole bookrunner for the deal.
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