Lenovo has withdrawn its IPO strategy of Shanghai’s Star Market, an unintended setback for China’s tech leader and its main stage.
Lenovo Group has removed its stock-sale application that is a blockbuster out of the Shanghai Star Market, making the decision just seven days since it had been approved by an exchange that has established itself as the center stage for China’s tech champions. The Shanghai Stock Exchange (SSE), who is responsible for managing the Star Market, said it has ended reviewing Lenovo’s bid selling shares as per an announcement made late on Friday. The Beijing-based company is the world’s biggest maker of products for personal use…
1-Lenovo is already listed on the stock exchanges of New York, and Hong Kong was planning to raise as much as HK$13.6 trillion (US$1.8 billion) in Shanghai.
2-With its shares listed on the Hong Kong stock exchange, the PC manufacturer is the first company to opt for two listings in the Shanghai Star Market using Chinese depository receipts.
3-Lenovo presented the Star Market listing application in September. 30 and received approval on the same day.
4-The company will provide just less than 10% capital stock to collect 10 billion Yuan (around US$1.54 billion).
5-The Shanghai Stock Exchange (SSE) who oversees Star Market, also known as the Star Market, said it has ended the process of reviewing Lenovo’s request to sell shares.
Lenovo Group has pulled its blockbuster stock-sale app out of the Shanghai Star Market, making the withdrawal just seven days since it had been approved by an exchange that has set itself as the center stage for China’s tech champions.
The Shanghai Stock Exchange (SSE) is the one that oversees the Star Market, said it has ended the review process for Lenovo’s request for shares to be sold, as per an announcement made late on Friday. The Beijing-based company, the largest manufacturer of computer systems for the personal, was asked to withdraw its application on October 8 and its listed sponsor China International Capital Corporation (CICC) in the announcement.
Lenovo Group Limited, often abbreviated to Lenovo the name is a Chinese multinational technology company specializing in manufacturing, designing, and marketing consumer electronic devices, personal computers, and other related services. The company’s products include laptops, desktop computers, tablets, smartphones, tablet computers, workstations, servers, supercomputers, and electronic storage devices, applications for managing IT, as well as smart TVs. The most well-known brands are IBM’s ThinkPad business laptop computer line, Lenovo’s IdeaPad, Yoga, and Legion consumer laptop computers, and its IdeaCentre and ThinkCentre models of desktop computers. As of January 20, 2021, Lenovo is the world’s largest computer maker in terms of unit sales.
It is the second-largest IPO announcement to be canceled of IPOs in Shanghai in the last two years. Ant Group, the affiliate of the newspaper’s owner Alibaba Group Holding, had its US$39.7 billion dual listings canceled in November of 2020. Lenovo is a company whose shares are currently listed on both exchanges on the New York and Hong Kong exchanges, was planning to raise as much as HK$13.6 billion (US$1.8 billion) in Shanghai this year, making Lenovo the only Chinese firm to sell Chinese Depository Receipts (CDRs) in the financial market in China for companies in the field of technology.
The unexpected cancellation of the Star Market is a setback to the Star Market’s effort to draw foreign-registered Chinese companies to put their listings on the market as part of the Chinese Presidency of Xi Jinping’s directive for investors in China to benefit from the growth in capital of China’s top technology companies. Lenovo was founded by tech entrepreneur Liu Chuanzhi nearly four decades ago; he owns Lenovo’s IBM ThinkPad line of laptops and personal computers and the Motorola range of smartphones.
Lenovo is the very first Red Chip company to raise funds in Shanghai via CDRs. Red Chips, listed in Hong Kong, are offshore-incorporated companies whose assets and businesses are in China.