Luxshare Precision Industry, headquartered in China, announced on Tuesday that its Hong Kong listing has been priced at the upper limit of its target range, resulting in the raising of approximately HK$24.27 billion (US$3.09 billion).
The Apple supplier, listed in Shenzhen, revealed the offer price was set at HK$63.28 per H-share, resulting in the sale of 383.5 million shares.
Luxshare plans to use the proceeds from the listing to enhance its manufacturing capacity within the automotive and consumer electronics sectors. The raised capital will also be used to fund artificial intelligence-powered factory upgrades, facilitate potential acquisitions, repay existing debt, and bolster the firm’s working capital.
A significant part of the raised funds will be dedicated to the expansion of Luxshare’s automotive electronics business. This is indicative of the firm’s strategic move beyond consumer electronics and into the rapidly expanding field of intelligent vehicle supply chain.
Luxshare revealed that it anticipates announcing the level of investor demand for its international offering, as well as the allocation results, on July 8. The company’s shares are expected to commence trading on the Hong Kong Stock Exchange at 9:00am local time on July 9.
Luxshare was founded by Chinese billionaire Wang Laichun and is counted among Apple’s largest suppliers. The firm is responsible for the manufacturing of a range of electronic devices, comprising routers, wireless charging modules, and video conferencing equipment.
What does Luxshare Precision Industry plan to do with the proceeds from its Hong Kong listing?
Luxshare plans to use the raised capital to expand its manufacturing capacity, fund factory upgrades, pursue acquisitions, repay debt, and support working capital.
How is the company expanding its business?
Luxshare is looking to move beyond the sphere of consumer electronics and delve deeper into the rapidly growing intelligent vehicle supply chain.
When does Luxshare plan to begin trading its shares?
Trading of Luxshare’s shares is expected to begin on the Hong Kong Stock Exchange at 9:00am local time on July 9.
