Lenovo Works With CICC on $1.5 Billion Shanghai Listing

(Bloomberg) -- Lenovo Group Ltd. is working with China International Capital Corp. to prepare for its planned listing in Shanghai through the issuance of Chinese depositary receipts, which could raise as much as $1.5 billion, people familiar with the matter said.

The company announced the plans Tuesday evening and said it will sell no more than 10% of its enlarged share capital in the CDR issuance. Lenovo is looking to list in Shanghai as soon as the first half of this year, said one of the people, who asked not to be identified as the information is private.

If successful, Lenovo would be the biggest Chinese firm yet to conduct such listing in Shanghai since Beijing began a trial program in 2018 to lure big technology firms based overseas to sell yuan-denominated securities in China. Lenovo’s proposed offering still needs approval from shareholders and regulators.

Shares in Lenovo rose as much as 17% in Hong Kong on Wednesday, the biggest intraday gain since April 2015.

More banks could be added and details of the offering including size and timeline could still change with ongoing deliberations, the people said. A representative for Lenovo didn’t provide further information beyond the official statement, while a representative for CICC didn’t immediately respond to requests for comment.