Legend, property arm eye IPO in HK, China

HONG KONG: Legend Holdings — parent of computer group Lenovo Group Ltd — and its property unit Raycom Real Estate aim to listing in Hong Kong and in China between 2014 and 2016, the South China Morning Post reported on Monday, Feb 21.

A simultaneous listing was prefereable to listing the parent and the property unit separately, the newspaper reported, citing Legend chairman Liu Chuanzhi.

"We need to make sure these companies are going to be businesses that continue to see around 30% annual profit growth or more for at least three years after an IPO [initial public offering]," Liu said.

Beijing-based Legend has accelerated its listing plan in Hong Kong ahead of an earlier schedule of between 2015 and 2017, while property arm Raycom, with total assets of more than 10 billion yuan (RM4.62 billion), aims to list on the mainland.

The ambitious double IPO reflects Liu's strong confidence in business prospects of Legend's five subsidiaries on the mainland, including Lenovo, information technology services unit Digital China, Raycom, venture capital firm Legend Capital, and equity investment and management arm Hony Capital, the newspaper said.

It gave no further listing details.

Last week, Lenovo beat estimates with a 25% jump in third-quarter net profit, its strongest result in more than two years, but a slowdown in its key home China market could affect its 2011 outlook. — Reuters