China, July 11: Shares in Chinese electronics manufacturer Luxshare dropped by 1.6 percent in its Hong Kong debut on Thursday, after raising around $3.1 billion to become the finance hub's largest listing this year. Luxshare Precision Industry priced its shares at 63.3 Hong Kong dollar ($8.1) each, in hopes of raising funds to upgrade its production bases and smart manufacturing capabilities. The company's shares closed at HK$62.3, after falling at one point more than 7 percent.
Thursday's listing surpassed the $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 centers. In recent years, more than 80 percent of its sales revenue has come from outside of China. It said in its prospectus it would explore market opportunities in several industries.
Hong Kong's 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.
"While IPOs tend to cluster at periods of high sentiment, we think the recent selloff in some semiconductor stocks are reflecting more cautious approach to AI adoption rather than a collapse in demand," Phelix Lee, senior equity analyst at Morningstar, said in a note.
Source: Qatar Tribune
