By Yifan Wang

Shares of AAC Technologies Holdings Inc. are sharply higher in morning trading, after the company announced a 1.15 billion yuan (US$164.3 million) fundraising by one of its units.

The smartphone-component maker's shares soared as much as 16% in the first hour of trading, adding up to 10.3 billion Hong Kong dollars (US$1.33 billion) to its market capitalization.

The company said after market hours Wednesday that its subsidiary specializing in optical products, AAC Communication Technologies (Changzhou) Co., will get the multimillion-dollar funding from investors including an investment firm controlled by Xiaomi Corp. and smartphone maker OPPO Guangdong Mobile Communication Co.

The financing is expected to be used to boost AAC Communication's working capital.

AAC Technologies shares were recently trading 10% higher at HK$58.50. 



  Write to Yifan Wang at yifan.wang@wsj.com