Apple Supplier Luxshare Launches $3.1 Billion Hong Kong Share Sale, Largest of 2026 So Far

The Deal

Luxshare Precision Industry launched its Hong Kong share sale on Tuesday, June 30, offering 383.5 million H shares at a maximum price of HK$63.28 each, according to its prospectus. Total proceeds could reach HK$24.27 billion, or roughly $3.1 billion.

The China Securities Regulatory Commission approved the listing on June 22, according to Crypto Briefing. The final offer price is expected to be set July 7, with pricing and allocation results due the following day. Trading is scheduled to begin July 9.

This is a secondary listing. Luxshare already trades on the Shenzhen exchange under ticker 002475.SZ, where its shares closed Monday at 65.30 yuan. The Hong Kong offer price reflects a 16% discount to that close, according to NDTV Profit.

Who's Buying In

Cornerstone investors—those who get a guaranteed allocation in exchange for a six-month lockup—have already committed to $1.5 billion worth of stock, per NDTV Profit. The list includes Singapore's Temasek Holdings, Singapore sovereign wealth fund GIC, the Abu Dhabi Investment Authority, Hillhouse Investment, Tencent Holdings, and Millennium Management.

About 90% of the offering is allocated to international investors, with the remaining 10% going to Hong Kong retail buyers, according to CNBC. Citic Securities, China International Capital Corp. (CICC), and Goldman Sachs are leading the listing.

The Numbers Behind the Company

Luxshare posted revenue of 332.3 billion yuan ($48.9 billion) in 2025, a 24% increase year over year, according to NDTV Profit and Crypto Briefing. Net profit attributable to shareholders came in at 16.6 billion yuan, growing at a similar pace. The company's Shenzhen-listed shares have risen 88% over the past year, giving it a market value around $70 billion.

Frost & Sullivan ranks Luxshare as the largest precision intelligent manufacturing company in mainland China and fifth largest globally by 2025 revenue, per CNBC.

The Apple Dependency Problem

Consumer electronics—overwhelmingly Apple products—accounted for nearly 80% of Luxshare's revenue last year, according to CNBC. That represents a single-customer concentration risk.

The company knows it. Automotive electronics now contribute 11.8% of sales, up from 3.9% two years earlier. Luxshare is also targeting artificial intelligence hardware, data center infrastructure, robotics, 3D printing, and what it calls the "low-altitude economy," a Chinese market term for drone and urban aviation applications. How fast that diversification can reduce Apple dependency will be critical to watch.

Largest Hong Kong Deal of 2026

If the offering closes at maximum size, it would surpass Nvidia supplier Victory Giant Technology's HK$20.12 billion April listing to become Hong Kong's biggest IPO of 2026, according to Morningstar's Dow Jones wire report.

Luxshare isn't alone in the market right now. Eight other companies also launched Hong Kong offerings Tuesday. Chaozhou Three-Circle, a Chinese ceramic and electronic components maker, is seeking HK$7.16 billion. Nexchip Semiconductor, China's third-largest chip foundry behind SMIC and Hua Hong, is targeting HK$6.98 billion. Guangdong Dtech Technology, which makes micro-cutting tools for printed circuit boards, is eyeing HK$4.80 billion. Combined, the nine companies launching offers Tuesday could raise up to around $6 billion, per Morningstar.

This wave reflects Hong Kong's broader IPO resurgence. The city reclaimed the global top spot for funds raised in 2025, driven largely by secondary listings from Chinese companies seeking access to offshore capital pools that mainland-only listings can't reach.

The Geopolitical Dimension

Luxshare is a Chinese state-adjacent manufacturer assembling products for America's most valuable company, now raising capital from Singapore sovereign funds and Abu Dhabi's sovereign wealth vehicle through a Hong Kong listing structured to attract Western institutional money. At a moment when U.S.-China trade tensions, tariff policy, and supply chain decoupling rhetoric are live policy debates in Washington, a $3.1 billion capital raise by a core Apple supplier warrants scrutiny beyond the IPO mechanics.

Apple has spent years under congressional pressure to reduce China manufacturing exposure. Luxshare's growth trajectory is largely a bet that Apple's China production footprint stays large. If tariffs tighten further or Apple accelerates its India shift, Luxshare's revenue concentration risk becomes a material business problem. The cornerstone investors—including Gulf and Singaporean sovereign funds—clearly see the risk as manageable. Whether they're right depends on trade policy decisions being made in Washington and Beijing, not Hong Kong.

What Happens Next

Luxshare plans to use the proceeds to expand production capacity in automotive and consumer electronics, fund R&D, invest in select companies, repay bank borrowings, and cover working capital, per NDTV Profit and CNBC. The company has not specified how it would weight those categories if the offering prices below the HK$63.28 ceiling. With a 16% discount already built into the maximum price, there is room for further adjustment before July 7.