Luxshare Precision Industry, which supplies Apple’s AirPods and some iPhone models, plans to sell new shares in Hong Kong in what could be one of the 10 biggest tech listings this year after Beijing opened the door for more companies to raise capital offshore.
The Shenzhen-listed firm said its listing plan was to improve overseas financing capabilities and accelerate global expansion, according to its exchange filing on Thursday. The firm is said to be seeking more than US$1 billion from its stock offering later this year, according to a Bloomberg report on the same day.
The first-time offering in Hong Kong would not alter Luxshare’s leadership structure or change its controlling shareholders and beneficial owners, according to the filing.
At least 16 onshore industry peers have similar Hong Kong listing plans amid appetite from global funds seeking to diversify from US dollar assets, including Apple supplier Lens Technology, smartphone maker Shanghai Longcheer Technology and semiconductor designer OmniVision Integrated Circuits, according to Huatai Securities.
Hong Kong hosted some of the biggest global tech listings this year. EV battery king Contemporary Amperex (US$5.2 billion), drug maker Jiangsu Hengrui Pharmaceuticals (US$1.26 billion), condiment producer Foshan Haitian Flavouring & Food (US$1.3 billion), and Zhejiang Sanhua Intelligent Controls (US$1.2 billion) topped the billion-dollar deals.
Luxshare is based in Shenzhen and was listed in 2010. The stock has declined 12.5 per cent this year, giving the firm a market value of 258.6 billion yuan (US$36.1 billion), according to Bloomberg data. It also owns factories in Vietnam, Thailand, Indonesia, Malaysia, Romania, Morocco, India, Mexico and Germany.
