Legend Holdings, the parent of mainland computer giant Lenovo Group, has a long-term plan to invest 13 billion yuan (HK$14.82 billion ) in the energy, environment and chemical sectors, and to list itself and some of these companies in coming years.
The first company to be listed is Legend's property subsidiary, Raycom Real Estate.
Raycom was established in 2001 and has land reserves of 2.7 million square metres and nearly 10 billion yuan of assets. In 2009, revenue was four billion yuan. Apart from Beijing, Raycom targets second-tier mainland cities, including Chongqing, Wuhan and Hefei, offering residential, office and commercial property.
'Raycom will probably list on the mainland. After that, Legend Holdings will have an H-share listing in Hong Kong,' said Liu Chuanzhi, the co-founder and chairman of Legend and Lenovo, declining to disclose the amount of funds to be raised or the market capitalisation of these planned listings.
Liu said it was not certain when Raycom would list, but Legend Holdings planned to list in five to seven years' time. In 2008, Legend Holdings had revenue of 115.2 billion yuan and total assets of 64.4 billion yuan, according to its website.
In addition, Legend intends to invest in companies in the environment, energy and chemical sectors, and subsequently list some of them after Legend's H-share listing, Liu said. The listings could be on the mainland, Hong Kong or overseas, said Zou Bo, public relations general manager of Legend Holdings.
'The listing is to raise funds for our diversified businesses. We want to build up various businesses. This requires funding. There is a limit to debt financing,' Liu said.