In order to finance future projects Luxshare, such as manufacturing lines for wearables like the Apple Watch and some for smart cars, Apple supplier Luxshare Precision Industry plans to raise roughly $2 billion in capital.
Investors will be able to purchase up to 2.1 billion shares at a price that will be announced later, according to Reuters. Approximately 13.5 billion yuan in additional capital is sought by Luxshare via the share offering.
“Downstream applications including consumer electronics and smart cars” are the focus of Luxshare’s efforts to increase manufacturing capacity, the business said in a filing with the Shenzhen stock market that was reviewed by Reuters.
New manufacturing lines for wearable gadgets, mobile terminal components, and high-voltage connection systems for cars are among the six projects included in the application.
A key Apple supply chain partner in China, Luxshare manufactures the company’s AirPods. Luxshare has recently been receiving more iPhone orders from Apple and is developing a big new “mega-plant” to challenge established Chinese competitors like Foxconn and Pegatron.
According to reports from February, Luxshare is planning to enter the electric car industry as Apple’s “Apple Car” suspicions persist. Luxshare, on the other hand, does not want to become a car manufacturer, but rather a supplier of internal vehicle components.