Apple supplier Luxshare said to plan pricing Hong Kong listing at top, with Temasek and GIC as cornerstone investors

[HONG KONG] Apple supplier Luxshare Precision Industry is poised to raise HK$24.3 billion (US$3.1 billion) after telling prospective investors it wants to price shares for its Hong Kong listing at the maximum amount it had set, according to sources familiar with the matter.

The Shenzhen-based components manufacturer is planning to price shares at HK$63.28 apiece, the sources said, asking not to be identified as discussing non-public information. That represents a discount of 13 per cent to Luxshare’s closing price of 62.88 yuan in Shenzhen on Monday (Jul 6).

Luxshare is selling 383.5 million shares and stopped taking orders on Friday instead of on Monday, the sources said.

A representative for Luxshare did not immediately respond to a request for comment.

The offering is set to be Hong Kong’s biggest first-time share sale this year, surpassing the HK$23.1 billion listing in April of Victory Giant Technology Huizhou, a maker of printed circuit boards.

Investor enthusiasm around a spate of artificial intelligence-related debuts has propelled share sales in Hong Kong to a five-year high despite a sluggish equity market.

Last Tuesday alone, nine companies – many in the technology sector – started taking investor orders for their offerings, seeking to raise US$6 billion combined.

Luxshare, which assembles products such as iPhones and AirPods, has climbed more than 80 per cent in Shenzhen over the past year, reaching a market value of US$71 billion.

Founded in 2004, Luxshare made components for consumer electronics before expanding into automotive electronics as well as communication and data centres.

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Lately, it is seeking opportunities in industries such as AI devices, 3D printing, robotics and the low-altitude economy.

Luxshare is set to formally price its listing on Tuesday, with its shares starting to trade on Thursday. The company attracted cornerstone investors including Singapore’s Temasek Holdings, GIC and Hillhouse Investment.

Citic Securities, China International Capital and Goldman Sachs are leading Luxshare’s share sale. BLOOMBERG