Lenovo Group Ltd. is capitalizing on two booming markets, Chinese stocks and the global PC industry, to list in Shanghai.
The company is the world’s largest maker of personal computers and is well-known for acquiring IBM ’s ThinkPad unit and the Motorola Mobility smartphone business. The news that Lenovo would join the STAR Market, China’s answer to the Nasdaq, boosted its Hong Kong-traded shares, which on Wednesday hit their highest level since 2015.
A series of Chinese technology companies have recently listed in mainland China or in Hong Kong, amid heightened tensions with the U.S. Beijing has also encouraged companies to join the fledgling STAR Market, also known as the Science and Technology Innovation Board, by introducing more relaxed listing rules and other requirements compared with other Chinese markets.
Lenovo and Megvii Technology Ltd., an artificial-intelligence startup specializing in facial recognition, will be among the first companies to make use of a structure known as a Chinese depositary receipt to raise funds.
In a filing late Tuesday, Lenovo said it planned to sell stock equivalent to up to 10% of its enlarged ordinary share count. Its shares jumped 9.7% on Wednesday, giving the company a market value of nearly $14 billion.