Apple supplier Luxshare's $3.1 bn Hong Kong IPO raises funds as shares slip

Luxshare Precision Industry, one of Apple’s largest suppliers, priced its dual Hong Kong‑Shenzhen listing at HK$63.28 per share, raising HK$24.3 billion (about US$3.1 billion). The Hong Kong debut was the biggest IPO in the city this year, but the shares fell as much as 9.6% below the offer price, closing down roughly 1.5% at HK$62.30. Shenzhen‑listed shares rose about 3.1%.

The prospectus says 35% of the proceeds will fund expanding production capacity, 30% will be spent on R&D and smart‑manufacturing upgrades, 15% on acquisitions, 10% on debt repayment and the remaining 10% on working capital. A significant share is earmarked for growth in automotive electronics and AI‑driven factory upgrades. Luxshare, founded by Wang Laichun, reported 2025 revenue of ¥332.3 billion and net profit of ¥16.6 billion, with Apple accounting for roughly 70% of its sales.

Investors cited a cautious market backdrop and geopolitical uncertainty, with Morningstar’s Chokwai Lee noting, “The underperformance of some new listings likely reflects a more cautious market backdrop and broader uncertainties surrounding global trade and geopolitics.” The IPO attracted sovereign investors such as Temasek, GIC and the Abu Dhabi Investment Authority.