Legend Holdings, the parent company of Lenovo Group (00992.HK), is seeking US$2 billion from a Hong Kong listing that could value the company in the 73.2 billion to 101.5 billion yuan range.
The valuation represents a price-to-earnings multiple of 15.7 to 19.4 times, the Hong Kong Economic Journal reported Tuesday, citing UBS AG, one of the sponsors of the deal.
A marketing roadshow for international investors will kick off on June 15, the report said.
Analysts at Goldman Sachs earlier said that they expect Lenovo’s holding company to achieve compound annual growth rate of 13 percent in earnings from 2014 to 2017.
The growth will be mainly driven by the acquisition of IBM’s x86 server business, integration with Motorola, and a turnaround in Legend’s vehicle leasing, elderly care, foods and petrochemical businesses, according to the analysts.
Goldman put Legend’s valuation in the 57 billion to 91 billion yuan range, representing a price-to-book ratio of 1.1 to 1.7 times, or a P/E of 8.6 to 13.5 times.
Translation by Vey Wong
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