Luxshare aims to raise up to $2.13 Billion

Luxshare Precision Industry Co Ltd (002475.SZ), a supplier of Apple Inc, plans to raise $ 2.13 billion on Monday to fund six projects, including building a production line for wearable devices. The company said in a filing with the Shenzhen Stock Exchange that it plans to issue 2.1 billion shares to up to 35 investors at a later announced price.

This move is due to Luxshare's push to "improve its manufacturing capacity in downstream applications such as consumer electronics and smart vehicles."  According to Filing, the six projects included the construction of a production line for smart wearable devices, precision components for smart mobile terminals, and high-voltage connectivity systems for new energy vehicles.

Luxshare was founded in 2004 and has become a fast-growing supplier for Apple. It has slowly moved up the hardware giant’s value chain from making connector cables for the iPhone and Macbook to manufacturing Airpods.

In 2020, the company acquired two iPhone assembly plants from Taiwan-based Wistron Corp (3231.TW). Analysts see the move as a sign that more Chinese companies are digging deeper into Apple's supply chain.