(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 about 10 billion yuan ($1.5 billion).
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 plans to submit a listing application after a shareholders meeting in February, a representative for the company said in response to query, confirming an earlier Bloomberg News report.
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.
Video: U.S. regulatory risks are driving Chinese firms to seek Hong Kong listings: Bain & Co. (CNBC)
Shares in Lenovo rose as much as 17% in Hong Kong on Wednesday, the biggest intraday gain since April 2015.
(Updates throughout with Lenovo’s confirmation.)
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