ADIA backs Luxshare’s Hong Kong float

Abu Dhabi Investment Authority has emerged as a cornerstone investor in Luxshare Precision Industry’s planned $3.1 billion Hong Kong listing, giving the Apple supplier heavyweight backing as the city’s equity market stages its strongest first-half fundraising run in five years.

The Shenzhen-listed electronics manufacturer opened the Hong Kong public offer on Tuesday, seeking to sell 383.5 million H shares at a maximum price of HK$63.28 each. At the top of the range, the deal would raise up to HK$24.27 billion, or about $3.15 billion, making it Hong Kong’s largest listing so far this year. Dealings are expected to begin on July 9, with the final offer price due before then.

ADIA is among a broad group of cornerstone investors that have agreed to subscribe for about $1.5 billion worth of shares. The group includes Temasek, GIC, Oaktree, HK Greenwoods, UBS Asset Management, Tencent-linked investment vehicles and other state-backed or institutional funds. Based on the maximum offer price, cornerstone investors would take about 185.7 million shares, representing roughly 48.4 per cent of the global offering before any over-allotment option.

The Abu Dhabi fund’s participation underlines the Gulf’s growing role in major Asian capital-market transactions, particularly in technology, advanced manufacturing and artificial intelligence-linked supply chains. ADIA, established in 1976, has long pursued global diversification across public and private markets, while Gulf sovereign investors have increased their exposure to Asia as economic links between the region and China deepen.

Luxshare’s listing comes during a burst of new Hong Kong offerings by technology and advanced manufacturing companies. Five companies launched share sales this week seeking to raise a combined HK$44.1 billion. Alongside Luxshare, the line-up includes Chaozhou Three-Circle, Nexchip Semiconductor, Guangdong Dtech Technology and Rokae Robotics Group. Their sectors span electronic components, ceramics, semiconductors and robotics, reflecting investor demand for companies tied to supply-chain localisation, AI hardware and industrial automation.

Hong Kong listings raised about $22.45 billion in the first half of 2026, nearly 57 per cent higher than a year earlier. The city has benefited from a return of mainland issuers, stronger liquidity in technology names and policy support for domestic champions to list closer to home. The revival has followed a prolonged slowdown in global IPO markets caused by higher interest rates, geopolitical tensions and weak post-listing performance in several sectors.

Luxshare is best known as a key supplier and assembler for Apple products, including AirPods, iPhones and the Vision Pro headset. Founded in 2004 by Wang Laichun, a former Foxconn worker, the company has grown from a connector manufacturer into one of the most important players in China’s electronics supply chain. Its rise has coincided with a shift in Apple’s vendor base, with mainland manufacturers taking a larger share of assembly and component work once dominated by Taiwanese contractors.

The company reported revenue of about 332.34 billion yuan in 2025, up nearly 24 per cent from the previous year. Net profit attributable to shareholders rose to about 16.6 billion yuan. Consumer electronics remains its largest business, contributing close to 80 per cent of revenue, but Luxshare has been trying to reduce dependence on smartphones and wearables by expanding into automotive electronics, communications infrastructure and AI-related manufacturing.

That diversification is a central theme of the Hong Kong offering. Luxshare plans to use roughly 35 per cent of the net proceeds to expand production capacity and upgrade existing manufacturing facilities. About 30 per cent is earmarked for technology research and development, manufacturing-process refinement and intelligent manufacturing capabilities. A further 15 per cent is intended for investments in upstream and downstream targets, while 10 per cent will be used to repay interest-bearing bank borrowings and another 10 per cent for working capital.

The automotive electronics business has become a faster-growing part of Luxshare’s portfolio, rising from less than 4 per cent of revenue two years earlier to around 12 per cent in 2025. The company is targeting precision interconnect systems, electronic modules and components used in increasingly digital vehicles, as carmakers expand spending on sensors, electric platforms and connected-cabin technology.

Investor interest is also being shaped by the AI infrastructure cycle. Component makers supplying high-density servers, optical communications and advanced manufacturing equipment have attracted stronger valuations as global technology companies expand data-centre spending. Luxshare’s pitch to investors positions it not only as an Apple supply-chain company, but as a broader platform for precision manufacturing across consumer electronics, vehicles and high-performance computing.