Luxshare Precision Industry, a key Apple supplier primarily known for manufacturing AirPods, is preparing for an initial public offering (IPO) in Hong Kong, aiming to raise as much as $3 billion. The company has already obtained clearance from the China Securities Regulatory Commission and is applying to list overseas-listed foreign shares (H shares) on the mainboard of the Hong Kong Stock Exchange.
The Shenzhen-listed company plans to issue no more than 441 million overseas-listed ordinary shares. Investment banks China International Capital Corp., Citic Securities Co., and Goldman Sachs Group Inc. have reportedly been selected as joint sponsors for the offering. The IPO could potentially launch as early as July 2025, although some reports indicate it could be as early as next month, pending market conditions and ongoing discussions.
Luxshare's decision to pursue a secondary listing in Hong Kong reflects a broader trend among mainland Chinese technology firms seeking to raise capital in the financial hub. This move is expected to provide additional funding for its expansion plans and enhance its visibility among international investors. The company's revenue is heavily dependent on Apple, accounting for 75% of its 2023 revenue, but Luxshare is actively diversifying into areas like automotive electronics and communications.
The company's market capitalization currently stands at approximately 246 billion yuan ($34 billion) to 295 billion yuan ($40.61 billion), depending on the reporting source. While its shares have experienced volatility due to geopolitical tensions, they have partially rebounded recently. The planned Hong Kong listing could be among the largest Chinese tech listings in Hong Kong this year, with comparisons to other significant issues like Contemporary Amperex (US$5.2 billion) and Jiangsu Hengrui Pharmaceuticals (US$1.26 billion).
