Sunday, March 24, 2019
Martin Hennecke

Blockbuster IPO for Legend in Lenovo mark
The largest shareholder in Lenovo Group (0992), Legend Holdings Corp, is planning in July an initial public offering that could raise up to HK$23.4 billion, the Wall Street Journal reported.

The state-linked firm was said to be working with China International Capital Corp and UBS for the listing and will submit an application to the local exchange in the coming weeks in what could become the largest IPO in Asia.

Legend holds 30.6 percent of Lenovo, the world's largest computer maker, and it is controlled by Lenovo founder Liu Chuanzhi and 10 Chinese Academy of Sciences researchers since its establishment in 1984.

The Beijing-based conglomerate also controls a domestic private-equity firm Hony Capital, which spent US$1.54 billion (HK$12.01 billion) to acquire UK's PizzaExpress last year.

Getting listed ahead of Legend, however, will be GF Securities, Niraku GC Holdings and Fuyao Glass Industry Group following listing approvals.

Shenzhen-listed GF Securities, China's fourth largest brokerage by assets, is to sell HK$7.8 billion worth of H shares.

It plans to kick off a roadshow on March 23 and its shares will start trading on April 10.

Last year, GF's total revenue soared 73.21 percent to 16.16 billion yuan (HK$20.03 billion) from a year earlier, thanks to a rally in the A-share market.

Legend intends to use part of the net IPO proceeds to develop a margin financing and securities lending business. It also plans to build online wealth management platforms, according to its IPO application.

Japan-based Niraku seeks to raise HK$585 million.

It hopes to become the second listed Japanese pachinko company in the SAR after Dynam Japan Holdings (6889).

In August 2012, Dynam Japan raised HK$1.57 billion.

Lenovo fell 0.37 percent to HK$10.90 yesterday, while Dynam Japan rose 1.1 percent to HK$14.74.

Previous news : Tencent in race for young blood


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