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Hong Kong’s stock exchange had its busiest day of the year for new listings on July 9, as five mainland Chinese companies made their trading debuts.
Among them was Lens Technology, a manufacturer of touch-screen covers for Apple Inc.’s iPhone. Its shares began trading at HK$18.88, representing a 3.9 percent gain from its offer price of HK$18.18. The Shenzhen-listed maker of lens products raised $607 million in its Hong Kong IPO at the top end of an expected range, the South China Morning Post reported.
“Today’s listing of Lens in Hong Kong marks a significant milestone in [the company’s] global strategy,” said chairperson Chau Kwan Fei. “We will use Hong Kong as a lever to integrate international capital with Lens’s manufacturing strengths and the Chinese market, sharing in the growth dividends of Chinese manufacturing.”
The company, which also makes other components for consumer electronics, saw sales and profit rise at least 20 percent last year, fueled by demand for smart gadgets. But Lens Technology remained heavily dependent on a few major clients, most notably Apple, which accounted for nearly half of its total sales.
“Lens Tech is one of the few global consumer electronics solution providers with advanced capabilities in both glass and metal processing,” SDICS International Securities analyst Alex Wang wrote in a note. Still, the company faces risks, including “high customer concentration and intensifying industry competition,” Wang added.
Meanwhile, other top-tier China-based Apple suppliers, Goertek, and Luxshare are seeking capital as they, too, work toward IPOs on the Hong Kong Stock Exchange, according to Digitimes. Goertek is advancing a separate IPO for its subsidiary, Goertek Microelectronics, valued at roughly HK$80 billion. Luxshare confirmed its IPO plans in early July, and its expansion strategy relies on acquisitions, including Leoni AG (2024) and Wingtech assets (2025).
