Legend Holdings Ltd, parent of Lenovo Group Ltd, may seek to list the computer maker in the US after ruling out selling shares on China's domestic stock market, Chairman Liu Chuanzhi said.
"In order to attract more interest from international investors, we are considering a listing in the US," Liu said yesterday. Lenovo can't sell shares to mainland investors while maintaining its Hong Kong listing, Liu said.
Lenovo last year bought International Business Machines Corp's personal computer division for US$1.25 billion to become the world's third-biggest PC maker.
The company moved its headquarters to Purchase, New York and in December hired William Amelio, from rival Dell Inc as chief executive.
Lenovo shares fell 3.2 percent to a seven-month low of HK$3.20 (41 cents) in Hong Kong yesterday. They have lost 15 percent this year, compared with a 4.7 percent gain in the Hang Seng China-Affiliated Corporations Index.
Beijing-based Legend also plans to raise funds by packaging its commercial properties into a real estate investment trust, or REIT, that will sell shares in Hong Kong, Liu said.
Legend unit Raycom Real Estate Development Co owns more than 2 billion yuan (US$249 million) of office properties, according to Liu. Rental income on the properties rose 50 percent last year to 60 million yuan, he said.
(China Daily March 9, 2006)
