Lenovo’s STAR flip powers its shares on Hong Kong bourse | Hong Kong
A Lenovo worker works at a manufacturing facility in Hefei, Anhui province, in March. (ZHOU MU / XINHUA)
Shares of Chinese language mainland know-how heavyweight Lenovo Group Ltd on the Hong Kong bourse jumped almost 10 p.c to HK$8.83 (US$1.14) on Wednesday, after the corporate stated it deliberate to problem Chinese language depositary receipts on the STAR Market in Shanghai.
The Shanghai Inventory Change’s Science and Know-how Innovation Board is also referred to as the STAR Market.
Lenovo‘s CDR plan got here on the heels of sturdy gross sales of non-public computer systems in an atmosphere of distant work, and home-based studying and leisure which have turn into the norm as a result of COVID-19 pandemic.
In a submitting with the Hong Kong bourse on Tuesday, Lenovo stated its board has authorized the proposed issuance of CDRs.
The Beijing-based firm stated it intends to problem new abnormal shares that may characterize not more than 10 p.c of its complete enlarged variety of abnormal shares.
Proceeds from the issuance might be used for the corporate’s analysis and growth of latest applied sciences, merchandise and options, strategic investments in associated sectors, and replenishment of its working capital, Lenovo stated.
The proposed CDR issuance is topic to market circumstances, shareholders’ approval and the mandatory approvals of the inventory exchanges and regulators involved, Lenovo stated.
Yang Yuanqing, chairman and CEO of Lenovo, stated the CDR plan will assist increase the hyperlink between Lenovo’s methods and the sturdy growth of the capital market within the Chinese language mainland, which is able to higher unlock the worth of Lenovo.
Yang Yuanqing, chairman and CEO of Lenovo, stated the CDR plan will assist increase the hyperlink between Lenovo’s methods and the sturdy growth of the capital market within the Chinese language mainland, which is able to higher unlock the worth of Lenovo
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Shen Meng, director of boutique funding financial institution Chanson and Co, stated Lenovo has maintained development over the previous 12 months, however the Hong Kong inventory market could have undervalued the corporate.
Lenovo is more likely to have the next valuation on the STAR Market, he stated.
Lenovo stated previously two years, its technique targeted on clever transformation as it’s dedicated to be the chief and enabler of clever transformation in all walks of life.
Because the world’s largest PC maker, Lenovo recorded a 29 p.c year-on-year development in its world shipments to over 23.1 million items within the fourth quarter of 2020, in accordance with knowledge from Worldwide Knowledge Corp, a market analysis firm.
The sturdy efficiency has helped Lenovo to additional dominate the worldwide PC sector with a market share of 25.2 p.c, a brand new excessive in its historical past.
Gianfranco Lanci, president of Lenovo, stated: “The COVID-19 pandemic continues to have an effect on each provide and demand. Lenovo, nevertheless, has fared, and can proceed to fare, higher than many within the business, given our operational excellence and ‘world/native mannequin’.
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“Lenovo’s operational functionality, well timed response to the ‘work and be taught from house’ development, and give attention to high-growth and premium segments drove the file efficiency.”
Ryan Reith, program vice-president with IDC’s worldwide cell system trackers, stated: “Demand is pushing the PC market ahead and all indicators point out this surge nonetheless has a (lengthy) method to go.
“The apparent drivers for final 12 months’s development centered round work at home and distant studying wants, however the energy of the buyer market shouldn’t be missed. We proceed to see gaming PCs and monitor gross sales at all-time highs.
“On reflection, the pandemic not solely fueled PC market demand but in addition created alternatives that resulted in a market growth.”