The Shanghai Stock Exchange has approved the application for Chinese computer maker Lenovo to list on its Nasdaq-style STAR Market, reports Caixin. The listing on the Chinese mainland would mark a symbolic return home for one of China’s oldest and widely-recognized tech companies. The Beijing-based Lenovo, currently listed in Hong Kong, plans to make its new listing in Shanghai by selling as much as 10% of its equity as Chinese depositary receipts (CDRs), according to a copy of the company’s preliminary prospectus.
That amounts to a fundraising goal of RMB 10 billion ($1.6 billion), which the company plans to use to replenish its operating capital and develop new products and services related to the cloud, digitalization and artificial intelligence.
Lenovo announced the Shanghai listing plan in January. If all goes to plan, it will become the first red-chip company to make a mainland listing by selling CDRs. Red chips are mainland-based enterprises incorporated internationally and traded offshore, often in Hong Kong.