Lenovo unexpectedly withdraws application for Shanghai public listing

Zohaib Ahmed — Sat, 09 Oct 2021 11:00:31 +0000

Lenovo has withdrawn its public listing application for the Shanghai Stock Exchange, a filing showed on Friday.

The company had submitted its Star Market listing application on September 30 which had gotten approved on the same day. It was sponsored by CICC, with Goldman Sachs Securities and CITIC Securities being its joint lead underwriters (via: Pandaily).

The prospectus had stated that the company would be offering less than 10% of its total share capital to raise 10 billion yuan ($1.54 billion). Out of the total, 5.514 billion yuan is to be used for R&D, 1 billion for industrial strategic investment projects, and 3.5 billion to supplement working capital.

Had the application actually been followed through, Lenovo would have become the first company to complete a dual listing on Shanghai’s Star Market using Chinese depository receipts.

Lenovo’s net profit over the past three fiscal years was 4.247 billion yuan, 5.594 billion yuan, and 8.685 billion yuan, respectively, as per the prospectus.

The company’s core business is comprised of smart devices and data centers, and its products are mostly computers, mobile phones, and data center equipment.

In an interview regarding the plan to return to Chinese A-shares, Yang Yuanqing, Chairman of Lenovo Group, said, “On one hand, Lenovo’s business is rooted in China and we have been looking forward to listing in China. On the other hand, we hope to establish connection with more customers through the Star Market, and optimize the company’s capital structure by making better use of the booming domestic capital market.”

Lenovo Group Shanghai public listing Archives - Gizmochina

Lenovo unexpectedly withdraws application for Shanghai public listing