Luxshare priced its Hong Kong IPO at 63.28 Hong Kong dollars per share. The stock opened and immediately slid over 5%. The company raised HK$24.27 billion. The market erased more than that amount in minutes. Beautiful symmetry.
This is the AirPods manufacturer. They make tiny white earbuds that people lose in couch cushions. The company was already listed in Shenzhen. They wanted more access to capital. They got access to Hong Kong retail traders instead. Those traders saw a dual-listed Chinese tech manufacturer and thought, "Yes, this is my moment."
The IPO priced at 63.28. Let's call that 60 for the idiots who bought at open. Actually, let's call it 58 because that's closer to where they're sitting now. They watched their money disappear faster than AirPods battery life after six months.
Dual listings exist so companies can raise money twice from two different pools of suckers. Luxshare executed the strategy perfectly. Shenzhen investors funded the business. Hong Kong investors funded the yacht.
The technical setup here is immaculate. Fresh IPO. Immediate rejection of the opening price. No support levels because the stock has existed in this market for approximately four hours. Every single person who bought today is underwater. Not one winner in the entire order book.
Somewhere a retail trader is explaining to his wife why they can't afford new AirPods anymore because he bought shares in the company that makes AirPods. She's listening to him through her wired earbuds. The irony is lost on both of them.
The company makes components for Apple. Apple is fine. Luxshare raised three billion dollars. Luxshare is not fine. The math doesn't care about your supply chain thesis.
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