Lenovo parent Legend Holdings generates US$2 billion in Hong Kong IPO

PUBLISHED : Friday, 26 June, 2015, 10:32am
UPDATED : Friday, 26 June, 2015, 7:43pm

Legend Holdings, the parent of computer giant Lenovo Group, priced its initial public offering in Hong Kong at HK$42.98 per H share, generating about US$2 billion from the sale of 352.944 million shares.

In a regulatory filing on Friday, Legend said the net proceeds from the IPO was estimated to reach HK$14.627 billion, after deducting underwriting commissions, incentive fees and other expenses.

The local market offering of 26,470,800 H shares, which was about 45.17 times oversubscribed, represents 7.5 per cent of the total stock up for sale.

The international offering, also significantly oversubscribed, was decreased to 326,473,200 shares, making up 92.5 per cent of the total IPO.

The first day of trading for the company's shares in Hong Kong is scheduled for Monday.

Beijing-based Legend, a highly diversified investment company, plans to spend its IPO’s net proceeds on new acquisitions and further development of existing businesses.

It has a 30.56 per cent controlling stake in principal subsidiary Lenovo, the shares of which started trading in Hong Kong's main board on February 14, 1994.

Legend, which started doing business in mainland China as a personal computer distributor in 1985, signed up 24 so-called cornerstone investors to subscribe to about half of the company’s global share offering.

Ping An of China Asset Management (Hong Kong), the overseas investment arm of Shenzhen-based Ping An Insurance Group, made the biggest bet among those investors, subscribing to 10,821,200 shares that accounted for 3.07 per cent of the total on offer.

China Life Franklin Asset Management, China Re Asset Management (Hong Kong), China National Building Material Company, CNIGC Investment Management and Easy Smart each subscribed to 2.55 per cent of the offered shares.

Founded by entrepreneur and former Lenovo chairman Liu Chuanzhi in 1984, Legend has grown into one of mainland China's biggest investment groups. It posted revenue of 289.5 billion yuan (US$47.2 billion) last year and had total assets worth 289 billion yuan as of December 31.

Apart from Lenovo's interests in information technology and consumer electronics, Legend is also into financial services, logistics, food and agriculture, property, financial investments, chemicals and energy materials, car rentals and China's largest dental service chain, Bybo.