Chinese PC Maker Lenovo Withdraws Application for Shanghai Listing, Eight Days After Application Approval

lenovo
(Source: VCG)

Lenovo Group has withdrawn its application for a public listing in Shanghai, a filing of the Shanghai Stock Exchange showed on Friday.

Lenovo submitted its Star Market listing application on September 30 and received approval on the same day. Its sponsor was CICC and its joint lead underwriters are Goldman Sachs Securities and CITIC Securities.

According to the prospectus, the company will offer less than 10% of its total share capital to raise 10 billion yuan ($1.54 billion). Among them, 5.514 billion yuan is to be used for research and development of new products, 1 billion yuan is to be used for industrial strategic investment projects, and 3.5 billion yuan is to be used to supplement working capital.

Lenovo’s core business includes smart devices and data centers, and its main products include personal computers, mobile devices, data center equipment and related solutions. According to the prospectus, its net profit over the past three fiscal years was 4.247 billion yuan, 5.594 billion yuan and 8.685 billion yuan, respectively.

If the original plan had been carried out, the PC producer, which is already listed on the Hong Kong stock exchange, would have been the first company to complete a dual listing on Shanghai’s Star Market using Chinese depository receipts.

SEE ALSO: Lenovo to Issue CDRs, Planning to List on STAR-Market, Shares Soar 15%

Regarding the plan to return to Chinese A-shares, Yang Yuanqing, Chairman of Lenovo Group, said in an interview: “On the 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.”