Luxshare is one of the best rags to riches stories, founded by a woman who started as a Foxconn assembly line worker and grew to become a multi-billion dollar company and a key player. Apple supplier.
It has been a publicly traded company in Porcelain since 2010, but has now added a second listing in Hong Kong, making it more accessible to foreign investors. Its last quote set a new record before retreating…
Founded by Wang Laichun, Luxshare went from being a cable manufacturer to assembling first AirPods, then iPhones and, most recently, Vision Pro models.
Shares of Chinese companies are tightly controlled, and foreign investors face trading quotas and, in some cases, the need for regulatory approval. For that reason, it is not unusual for Chinese companies to create a dual listing in Hong Kong. Although control of the island was returned to China from Britain, it still operates without capital controls or quotas on foreign investment.
LuxShare was bullish on its price, opting for HK$63.28 per share, the top of the range. This saw the company set a new record as the city’s biggest listing of the year, raising around HK$24.3 billion (US$3.1 billion).
However, as TNW The stock’s value reportedly soon fell back.
The stock fell as much as 9.6% below its offer price before recovering some of the loss, a disappointing opening for one of the most watched stock sales of the year (…) The shares hit a low of around HK$57.2 against the offer price of HK$63.28 and were changing hands near HK$60 for much of the morning.
Investor concerns include the company’s dependence on Apple, with the iPhone maker accounting for more than two-thirds of its revenue, especially as the Cupertino company seeks to reduce its dependence on China by moving some of its assembly work to countries such as India and Vietnam.
However, the new investment will help the company fund production capacity in other countries, and Luxshare is also expected to increase the amount of work it does for other clients.
Photo by Adam Smigielski in unpack
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