Chinese PC maker Lenovo soars 15% after Shanghai share listing plan

0
16


Photo taken on Jan. 8, 2020 shows the world’s first 5G personal computer launched by Lenovo during the 2020 Consumer Electronics Show in Las Vegas, the United States.

Wu Xiaoling | Xinhua News Agency | Getty Images

GUANGZHOU, China — Shares of Hong Kong-listed Lenovo rose over 15% on Wednesday after the Chinese PC maker said it plans to list stocks in Shanghai.

Lenovo shares were trading at 9.30 Hong Kong dollars at 10 a.m. local time, a 15.5% rise from the previous close.

On Tuesday, Lenovo said it had filed a request to the Hong Kong stock exchange, asking them to issue so-called Chinese depositary receipts (CDRs) on the Science and Technology Innovation Board or Star Market of the Shanghai Stock Exchange.

CDRs allow mainland Chinese investors to buy equity in non-Chinese incorporated companies, and are similar to American depositary receipts (ADRs) which allow stocks of non-U.S. company shares to trade on American exchanges. They are technically not shares but represent equity interest in a company.

Shanghai’s Star Market launched in 2019 with the aim of attracting innovative technology companies through more relaxed listing rules than other stock boards. In December, the Star Market welcomed its 200th company.

Lenovo said it intends to issue new ordinary shares that would represent no more than 10% of the total enlarged number of ordinary shares of the company.  

The proceeds from the issuance will be used for the company’s research and development of new technologies, products and solutions, strategic investments in related sectors, and replenishment of its working capital, Lenovo said in a statement.

“With Lenovo’s strong global presence and heritage in China, we are confident that this offering will help further realize Lenovo’s value by leveraging the booming China capital market at the same time enable investors in China to invest more easily,” Yuanqing Yang, Lenovo Chairman and CEO, said in the statement.

“The offering will allow us to make greater investments in technologies and innovations, and better drive digital and intelligent transformation across industries.”



Source link

LEAVE A REPLY

Please enter your comment!
Please enter your name here