PHOTO
The Abu Dhabi Investment Authority (ADIA) is one of the cornerstone investors in Chinese electronics manufacturing giant Luxshare’s expected $3.1 billion Hong Kong IPO, which opened Tuesday.
The UAE sovereign wealth fund is one of nearly two dozen major state-backed investors, asset management firms and funds investing in the IPO, including Singapore’s wealth fund Temasek, investment firms GIC and Oaktree, asset managers HK Greenwoods, UBS Asset Management (Singapore).
ADIA’s investment amounts to $45 million of the $1.5 billion cornerstone commitments for the Apple supplier, equivalent to 5.57 million shares or 0.07% of the company’s issued share capital at the maximum price of HK$63.28 ($8.06) per H share or Hong Kong-listed share.
Shenzen-listed Luxshare is offering 185,736,900 shares to cornerstone investors from the 383 million Hong Kong-listed H-shares. It is expected to start trading on July 9.
Luxshare is one of the key players on Apple’s supply chain, handling the assembly of AirPods, iPhones and the Vision Pro. The company is also a provider of precision intelligent manufacturing solutions (PIMS) in the Chinese Mainland.
Funds raised in the IPO will be used to expand Luxshare’s production capacity and upgrade existing production bases. The company has also earmarked approximately 10%, or HK$2,403.9 million, to repay existing interest-bearing bank borrowing.
CICC Hong Kong Securities Limited, CLSA Limited, Goldman Sachs (Asia), HSBC, GF Securities (Hong Kong) Brokerage Limited, and Guosen Securities (HK) Capital Company Limited are the joint global coordinators, joint bookrunners, joint lead managers and capital market intermediaries on the offering.
Abu Dhabi’s $1.187 trillion wealth fund has been ramping up Asia investments over the last few years, with a focus on India and China. In March, a unit of ADIA invested in a fund by Dignari Capital Partners (DCP), a Hong Kong‑based private credit investment manager, which focuses on real estate‑linked private credit opportunities.
(Reporting by Bindu Rai, editing by Seban Scaria)
