Beijing-based personal computer vendor Lenovo (HKSE: 0992) plans to issue Chinese depositary receipts (CDRs), representing newly issued ordinary shares, and to list them on the Science and Technology Innovation Board of the Shanghai Stock Exchange, also known as the Star Market, according to a filing on Tuesday.
Lenovo said that the new ordinary shares can represent no more than 10% of all shares after the issuance and that it will use the fresh capital for research and development of new technologies, products and solutions, strategic investments in related sectors, and replenishment of its working capital.
In the six months ended September 30, 2020, Lenovo made USD 27.9 billion in revenue from 180 markets worldwide, up 7% year-on-year (YoY), and collected USD 596 million in net profits, up 37% YoY.
Revenue from sales of PCs and smart devices grew 8.8% to USD 22.1 billion, contributing to 79% of its total revenue, allowing the company to remain the number one PC vendor globally. The data center business contributed USD 3.1 billion, growing 15% YoY, while mobile, mostly sales of smartphones, declined 13% YoY to USD 2.6 billion.
Lenovo adds up to a list of tech firms leveraging on the Star Market to seek funds. One year after its inauguration, the board has raised approximately USD 18 billion for 110 companies, with a total market cap of USD 242 billion as of June 12, 2020, KrASIA reported.
China’s largest semiconductor manufacturer SMIC debuted on the Star Market in July. The IPO of fintech giant Ant Group, however, was stopped by regulators in November.