Apple Parts Supplier to Raise $2.1 Billion in Face of Mounting Orders

What’s new: Lens Technology Co. Ltd., a parts supplier for Apple, Samsung and Huawei, plans to issue 1.3 billion shares to as many as to 35 buyers through a private placement, according to an announcement sent to Shenzhen Stock Exchange on Saturday.

The proceeds from the placement, which could raise up to 15 billion yuan ($2.1 billion), will be mostly earmarked for the construction of four projects in Lens Technology’s home city of Changsha, Hunan province.

What are the details: Of the 15 billion yuan, 5.4 billion yuan will be allocated to producing 3D touch panels and building supporting facilities. Some 4.3 billion yuan will be reserved for producing automobile glass and large display panels. And 1.3 billion will be earmarked for a wearable device project. An industrial internet project, which is expected to take three years to complete, will receive 2.1 billion yuan in funding. Another 2 billion yuan will be used to replenish the company’s working capital.

What’s the background: The fundraising plan comes as Lens Technology failed to meet the mounting orders from its customers due to product upgrades.

People familiar with the matter told Caixin that the effort is set to be finalized by the end of this year.

Quick Takes are condensed versions of China-related stories for fast news you can use. To read the full Caixin article in Chinese, click here.

Contact reporter Lu Yutong (yutonglu@caixin.com) and editor Michael Bellart (michaelbellart@caixin.com)