Lenovo stock drops 17% after withdrawing Shanghai listing application

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Reuters 11 October, 2021 - 12:13am

Shanghai suspends Syngenta IPO in mass listings freeze, blames outdated info

Reuters 11 October, 2021 - 12:26am

It also follows laptop maker Lenovo Group’s withdrawal on Friday of its application for a $1.5 billion listing on Shanghai’s STAR market, days after it had been accepted. It said on Sunday it had done so because of the possibility of the validity of financial information in its prospectus lapsing during the application’s vetting.

The Shanghai bourse said in disclosures that it had suspended the review of 57 IPO applications, including Syngenta’s, because financial materials the companies submitted needed to be updated.

Syngenta declined to comment but a person familiar with the matter said on Monday that the Chinese-owned agrochemical company filed the updated documents on Oct. 8, a day after a week-long national holiday in China.

The exchange was now likely having to work through a backlog of documents before updating its website, people familiar with the situation said.

The 57 companies were looking to raise more than 138 billion yuan ($21 billion) in total, according to Reuters calculations based on their prospectus filings.

Syngenta’s application to list on Shanghai’s STAR Market was accepted at the start of July..

Financial reports contained in a company’s IPO prospectus are valid up to six months, according to China’s securities regulator. Syngenta’s application featured financial information up to March-end, meaning it was outdated after Sept. 30.

The Switzerland-based seeds and crop protection giant was bought in 2017 for $43 billion by ChemChina, which was folded into Sinochem Holdings Corp this year.

Following the flotation, the producer of pesticides and seeds is likely to be valued around $60 billion including debt, or $50 billion without, sources previously told Reuters.

ChemChina is also considering a secondary listing for Syngenta that could take place less than a year after its Shanghai debut, with exchanges in Zurich, London and New York among the options being examined, sources have said.

($1 = 0.1551 Chinese yuan renminbi)

Reporting by Chen Aizhu, Meg Shen, Samuel Shen, Dominique Patton, John Revill and Julie Zhu; Additional reporting by Shanghai newsroom Editing by Kim Coghill, Christopher Cushing and Emelia Sithole-Matarise

Our Standards: The Thomson Reuters Trust Principles.

Nobel economics prize goes to David Card, Joshua Angrist and Guido Imbens

Shanghai suspends Syngenta IPO in mass listings freeze, blames outdated info

CNA 11 October, 2021 - 12:24am

BEIJING :The Shanghai Stock Exchange has put the brakes on scores of upcoming initial public offerings, including Syngenta's planned US$10 billion flotation, slated to be the world's largest this year, in a move it blamed on outdated financial data.

Though it's not unusual for Chinese regulators to seek updated financial information from IPO candidates at the start of each quarter, the move - affecting over US$21 billion in targeted fund-raising - has drawn market attention amid Beijing's tighter scrutiny of Chinese tech firms.

It also follows laptop maker Lenovo Group's withdrawal on Friday of its application for a US$1.5 billion listing on Shanghai's STAR market, days after it had been accepted. It said on Sunday it had done so because of the possibility of the validity of financial information in its prospectus lapsing during the application's vetting.

The Shanghai bourse said in disclosures that it had suspended the review of 57 IPO applications, including Syngenta's, because financial materials the companies submitted needed to be updated.

Syngenta declined to comment but a person familiar with the matter said on Monday that the Chinese-owned agrochemical company filed the updated documents on Oct. 8, a day after a week-long national holiday in China.

The exchange was now likely having to work through a backlog of documents before updating its website, people familiar with the situation said.

The 57 companies were looking to raise more than 138 billion yuan (US$21 billion) in total, according to Reuters calculations based on their prospectus filings.

Syngenta's application to list on Shanghai's STAR Market was accepted at the start of July..

Financial reports contained in a company's IPO prospectus are valid up to six months, according to China's securities regulator. Syngenta's application featured financial information up to March-end, meaning it was outdated after Sept. 30.

The Switzerland-based seeds and crop protection giant was bought in 2017 for US$43 billion by ChemChina, which was folded into Sinochem Holdings Corp this year.

Following the flotation, the producer of pesticides and seeds is likely to be valued around US$60 billion including debt, or US$50 billion without, sources previously told Reuters.

ChemChina is also considering a secondary listing for Syngenta that could take place less than a year after its Shanghai debut, with exchanges in Zurich, London and New York among the options being examined, sources have said.

(US$1 = 0.1551 Chinese yuan renminbi)

(Reporting by Chen Aizhu, Meg Shen, Samuel Shen, Dominique Patton, John Revill and Julie Zhu; Additional reporting by Shanghai newsroom Editing by Kim Coghill, Christopher Cushing and Emelia Sithole-Matarise)

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Lenovo plunge worst in 3 years

MyBroadband 11 October, 2021 - 12:00am

Lenovo Group Ltd. plunged by the most in three years in Hong Kong trading after the world’s No. 1 personal computer maker withdrew a plan to list in mainland China just days after its application was accepted by regulators.

Shares of the Beijing-based tech giant dropped as much as 18% in Hong Kong trading on Monday, the most since October 2018.

Lenovo, which first announced plans to list Chinese depositary receipts on Shanghai’s STAR market in January, said the validity of the information in its prospectus may have lapsed during the vetting process, according to a filing to the Hong Kong stock exchange.

The company also “thoroughly considered the relevant capital market conditions” as part of its decision to withdraw the listing, which would have been one of the largest since the inception of a trial program for CDRs in 2018.

Lenovo had sought to raise roughly 10 billion yuan ($1.55 billion) to fund artificial intelligence and cloud services projects as well as industrial investments.

The stock had been among the best performers on the Hang Seng Technology Index this year prior to Monday’s slump, as investors bet that hardware makers and advanced tech companies will be relatively immune to China’s crackdown on its internet giants.

“The withdrawal of the listing means that it would have to look for other fundraising alternatives,” said Justin Tang, the head of Asian Research at United First Partners in Singapore. “It might be that investors are concerned this could take the form of a dilutive rights issue.”

Lenovo may pursue capital-raising alternatives after canceling plans to issue Chinese depositary receipts, as it seeks funding to double its research and development spending on digitalization, artificial intelligence and other initiatives. An equity raise still makes sense, as Lenovo remains committed to deleveraging after recently achieving investment-grade credit ratings.

Comments section policy: MyBroadband has a new article comments policy which aims to encourage constructive discussions. To get your comments published, make sure it is civil and adds value to the discussion.

Lenovo Tumbles Most in 3 Years After Scrapping CDR Listing Plan

Yahoo Finance 10 October, 2021 - 10:13pm

Shares of the Beijing-based tech giant dropped as much as 18% in Hong Kong trading on Monday, the most since October 2018. Lenovo, which first announced plans to list Chinese depositary receipts on Shanghai’s STAR market in January, said the validity of the information in its prospectus may have lapsed during the vetting process, according to a filing to the Hong Kong stock exchange.

The company also “thoroughly considered the relevant capital market conditions” as part of its decision to withdraw the listing, which would have been one of the largest since the inception of a trial program for CDRs in 2018.

Lenovo had sought to raise roughly 10 billion yuan ($1.55 billion) to fund artificial intelligence and cloud services projects as well as industrial investments. The stock had been among the best performers on the Hang Seng Technology Index this year prior to Monday’s slump, as investors bet that hardware makers and advanced tech companies will be relatively immune to China’s crackdown on its internet giants.

“The withdrawal of the listing means that it would have to look for other fundraising alternatives,” said Justin Tang, the head of Asian Research at United First Partners in Singapore. “It might be that investors are concerned this could take the form of a dilutive rights issue.”

Lenovo may pursue capital-raising alternatives after canceling plans to issue Chinese depositary receipts, as it seeks funding to double its research and development spending on digitalization, artificial intelligence and other initiatives. An equity raise still makes sense, as Lenovo remains committed to deleveraging after recently achieving investment-grade credit ratings.

-- Matthew Kanterman and Nathan Naidu, analysts

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