Apple supplier Luxshare drops 4% in Hong Kong debut

Shares in Chinese electronics manufacturer Luxshare dropped by more than four percent in its Hong Kong debut on Thursday, after raising around US$3.1 billion to become the finance hub's largest listing this year.

Luxshare Precision Industry priced its shares at HK$63.3 each, in hopes of raising funds to upgrade its production bases and smart manufacturing capabilities.

But the company's shares fell to HK$60.6 during morning trading.


Thursday's listing surpassed the US$2.6 billion offering in April of Chinese circuit boards maker Victory Giant Technology.

Luxshare's decades-long growth was driven by continuously advancing its technology against the backdrop of China's industrial transformation, said billionaire CEO Wang Laichun, who once worked as an assembly line worker for the Taiwanese tech giant Foxconn.

Luxshare was founded in 2004 and is listed in the Chinese city of Shenzhen.

It is now China's largest provider of precision intelligent manufacturing solutions, and the fifth biggest globally, according to consultancy Frost & Sullivan.

The firm also produces automotive electronics, as well as communication and data centres.

It said in its prospectus it would explore market opportunities in several industries, including AI intelligent terminals, 3D printing, the low-altitude economy and robotics.

Hong Kong stock exchange was abuzz with listing celebrations on Thursday, welcoming five other Chinese technology and manufacturing firms, including Chaozhou Three-Circle, another electronic components maker, and drill bits producer Dtech Technology.

The finance hub welcomed about 100 firms listed in the city's stock exchange this year, and processed more than 520 listing applications.