Legend Holdings Corp., parent of Lenovo Group (00992.HK), said its upcoming listing in Hong Kong will make it more convenient for the firm to spin off subsidiaries in the right market at the right time.
At present, the rules about selling off assets, delisting and privatization in the A-share markets are not perfect, making it very difficult to engage in spin-offs, Zhu Linan, chief executive of Legend Holdings, said at a Hong Kong media briefing Monday.
Zhu said the firm has invested in companies in information technology, financial services, commercial and consumer services, agriculture and food, property and chemicals and energy materials, the Hong Kong Economic Journal reported.
Consumer and commercial services will be a key focus among all the segments, he said.
Liu Chuanzhi, chairman of Legend Holdings, said the firm would have achieved a higher valuation if it listed on the A-share market, because of its popularity in mainland China.
However, it chose to list in Hong Kong, as that could help it to become a global firm, Liu said.
He said it won’t be difficult for mainland investors to subscribe to Legend’s shares now that Hong Kong-Shanghai Stock Connect has been launched.
The firm plans to raise HK$15.7 billion by issuing 353 million new shares, 95 percent of which are allocated for international investors, in Hong Kong.
The shares are priced between HK$39.80 and HK$43.
There are 24 cornerstone investors, which include Ping An Insurance (Group) Co. of China (02318.HK) and CITIC Ltd. (00267.HK).
Public subscription will start Tuesday and end Friday.
Translation by Jeff Pao
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