LEGEND Holdings has secured approval from China's securities watchdog, clearing its way for a listing in Hong Kong which will raise about US$200 million. A spokesman for the Hong Kong computer distributor and related components maker said the local flotation has been ratified by China's Securities Regulatory Commission and the company had also been through a hearing before the listing committee of the local exchange. Approval from the mainland is needed because of Legend's close links with a state-owned enterprise. The company is owned by three parties, with Beijing Legend Holdings - an offshoot of China's Academy of Science - as the major shareholder owning 54 per cent. Beijing Legend was established in 1984 by academy staff at a time when China advocated commercialisation of scientific research. Daw Computer System in Hong Kong holds a 34 stake in Legend. The remaining shares are held by China Technology Trade Hong Kong whose shareholders include the Bank of China group and China Resources Holdings. The spokesman tried to play down the company's relations with Beijing Legend, saying they were mere business partners. The Beijing concern was one of the company's 180 computer distributors in China, she added. For the year ended last March, the company reported $1.8 billion in turnover, almost double the previous year's figure of $920 million. The spokesman declined comment on the size of the issue, but a source close to the company said the proceeds raised would be in the region of US$200 million. The offer is scheduled for the end of this month. China Development Finance and Wardley Corporate Finance are the sponsors. China tightened its grip last year on mainland companies seeking overseas listing in the wake of a rash of back-door listings by Chinese enterprises in the territory.