Lenovo shares soar on dual listing plan

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January 14, 2021

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Lenovo shares soar on dual listing plan

By Zhu Shenshen | 00:05 UTC+8 January 14, 2021 |

Print Edition

Shares of Lenovo surged more than 15 percent yesterday morning after China’s top computer vendor announced plans to list on the Shanghai STAR Market as another dual-listing tech giant.

Its share price jumped to 9.30 Hong Kong dollars (US$1.19) increasing its market value to over 112 billion yuan (US$17.2 billion) following its domestic listing plan announced on Tuesday night. The company’s share price closed at HK$8.830, up 9.69 percent, yesterday.

Hong Kong-listed Lenovo plans to propose issuance of CDRs, or Chinese depositary receipts, on the STAR Market, with new shares representing no more than 10 percent of total enlarged shares, according to its statement to the Hong Kong Stock Exchange.

Proceeds from the issuance will be used for research and development of new technologies, products and solutions, strategic investments and replenishment of working capital, Lenovo officials said.

“This offering will help further realize Lenovo’s value by leveraging the booming China capital market, allowing us to make greater investments in technologies and innovations and better drive digital and intelligent transformation across industries,” said Yang Yuanqing, Lenovo chairman and chief executive officer.

The STAR board offers fewer restrictions on initial public offerings than other domestic stock markets, with a pilot registration system, unlimited valuations and eased trading rules. It has attracted companies involved in fields such as cloud computing, semiconductors, information technology and biomedicine.

Chip giant Semiconductor Manufacturing International Corp got listed on STAR last July, making it the biggest firm by market value on STAR.

Like Lenovo, SMIC is also listed on Hong Kong’s “red chip” index, exemplifying STAR Market’s appeal to offshore-listed companies seeking domestic listings, analysts said.

In 2020, global personal computer sales increased 13.1 percent year on year, the highest growth rate in a decade.

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Lenovo shares soar on dual listing plan

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