Apple AirPods supplier Luxshare Precision eyes $2 bn for device, EV expansion
Apple Inc. supplier Luxshare Precision Industry Co. is seeking to raise up to 13.5 billion yuan ($2.1 billion) through a private share placement
Apple Inc. supplier Luxshare Precision Industry Co. is seeking to raise up to 13.5 billion yuan ($2.1 billion) through a private share placement to fund a series of projects from intelligent wearable device manufacturing upgrade to electric vehicle component production. The Shenzhen-listed company, a primary assembler of Apple AirPods products, plans to issue up to 2.1 billion shares to as many as 35 investors, including mutual funds, securities firms, trusts, finance companies, insurers as well as select foreign institutional investors, according to an exchange filing.
The firm aims to invest 6.2 billion yuan of the proceeds into the construction or upgrade of facilities and technology related to production of intelligent wearable devices, the statement said. It will spend about 2 billion yuan on production of electric vehicle components. And about 3.55 billion yuan of the proceeds will be used to supplement working capital.
The new share issue, which still requires approval from shareholders and regulators, should account for no more than 30% of the firm's total share capital ahead of the placement, the Shenzhen-based company said, adding that the new shares will be subject to a six-month lock-up period.
Luxshare Precision shares fell 1.5 percent on Monday, taking its year-to-date loss to 13% -- underperforming an about 6% decline in the benchmark CSI 300 index.