Home / NEWS / World News / Chinese PC maker Lenovo soars 15% after saying it will list shares on Shanghai’s Nasdaq-style board

Chinese PC maker Lenovo soars 15% after saying it will list shares on Shanghai’s Nasdaq-style board

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

Wu Xiaoling | Xinhua News Agency | Getty Images

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

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

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

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

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

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

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

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

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

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