Apple supplier Luxshare Precision Industry Co Ltd aims to raise up to 13.5 billion yuan ($2.13 billion) to fund six projects, including building a production line for wearable devices, it announced on Monday.
The Dongguan-based company plans to issue up to 2.1 billion shares to up to 35 investors at a price that will be disclosed at a later stage, Luxshare said in a filing to the Shenzhen stock exchange.
The move came as Luxshare pushed to “improve the company’s production capacity in downstream applications such as consumer electronics and smart vehicles,” it said in the filing.
The six projects included the construction of production lines of smart wearable devices, smart mobile terminal precision components, and high-voltage connection systems for new energy vehicles, according to its filing.
Founded in 2004, Luxshare has in recent years become a fast-growing supplier for Apple. It has steadily moved up the hardware giant’s value chain, from making connector cables for the iPhone and Macbook to manufacturing Airpods.
In 2020 the company acquired two iPhone assembly plants from Taiwan-based Wistron Corp.
That move is seen by analysts as a sign of more indigenous Chinese companies making deeper inroads into Apple’s supply chain.
- Reuters with additional editing by Sean O’Meara