Lenovo Withdraws Listing Application on STAR Market
What’s new: Chinese PC-maker Lenovo Group Ltd. halted its highly anticipated $1.6 billion share sale on Shanghai’s Nasdaq-like STAR Market, a Shanghai Stock Exchange filing showed on Friday.
The Shanghai bourse said (link in Chinese) Lenovo and its sponsor, investment bank China International Capital Corp, asked to withdraw the listing application on Friday, without giving any explanation.
Lenovo submitted its application at the end of last month, right before the week-long National Holiday starting Oct.1.
The background: A Lenovo listing on the Chinese mainland would mark a symbolic homecoming for one of China’s oldest and most recognized high-tech companies. The company in January announced the Shanghai listing plan, which could be the first domestic listing by a red-chip company through the issuance of Chinese depositary receipts (CDRs).
Beijing-based Lenovo, currently listed in Hong Kong, planned to make its new listing in Shanghai by selling as much as 10% of its equity as CDRs. That amounts to a fundraising goal of 10 billion yuan ($1.6 billion), which the company said will be used to replenish its operating capital and develop new products and services related to the cloud, digitalization and artificial intelligence.
Tang Ziyi contributed to the story
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