Hong Kong-listed Chinese software group Kingsoft Corp. Ltd., a Microsoft challenger, is awaiting the Shanghai bourse’s final decision on its plan to list its office software unit on China’s Nasdaq-style high-tech board, renewing a failed attempt from three years ago to float the business division, according to a Monday release on the Shanghai stock exchange.
The Shanghai exchange finished its second round of questioning about the proposed listing of Kingsoft Office, which filed its IPO prospectus May 8 in hopes of raising 2 billion yuan ($291 million). Regulators made enquiries regarding issues related to the unit’s spin-off from Kingsoft, controlling stakeholder and fundraising plan, according to the most recent disclosure.
Lei Jun, the founder of Xiaomi Corp., co-founded Kingsoft 12 years before his foray into the smartphone industry. Lei has been the chairman of Kingsoft’s board since 2011. As of the end of May, Lei held 15.31% of Kingsoft with an overriding 25.7% voting right. Through several affiliates, Lei holds 11.99% of Kingsoft Office, according to the company’s response to regulators disclosed by the stock exchange.
If approved, Kingsoft Office would become the third listed company controlled by the Chinese tech entrepreneur, after Kingsoft and Xiaomi listed in Hong Kong.
Kingsoft’s Hong Kong shares rose 1.79% Tuesday to close at HK$17.04 ($2.18) apiece.
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