Apple supplier Luxshare Precision Industry Co. is seeking to raise up to 13.5 billion yuan ($2.1 billion) through a private share placement to fund a series of projects from intelligent wearable device manufacturing upgrade to electric vehicle (EV) component production.
The Shenzhen-listed company, a primary assembler of Apple’s AirPods products, plans to issue up to 2.1 billion shares to as many as 35 investors, including mutual funds, securities firms, trusts, finance companies, insurers as well as select foreign institutional investors, according to an exchange filing.
The firm aims to invest 6.2 billion yuan of the proceeds into the construction or upgrade of facilities and technology related to production of intelligent wearable devices, the statement said. It will spend about 2 billion yuan on production of electric vehicle components. And about 3.55 billion yuan of the proceeds will be used to supplement working capital.
MacDailyNews Note: In December, Nikkei Asia reported that Luxshare is in the midst of building a massive manufacturing complex in eastern China as it aims — with Apple’s blessing — to break the decade-long hold that Taiwanese rivals Foxconn and Pegatron have on iPhone assembly.
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So, Apple is diversifying its Chinese manufacturing arms by getting more manufacturers in China. Smart move? Discuss.