Legend Holdings, the China-based holding company that partially owns computer manufacturer Lenovo, raised $1.96bn from its initial public offering in Hong Kong last week.
Legend, which counts insurance firm Ping An among its shareholders, issued 352.9 million shares priced at HK$42.98 ($5.54) each. Ping An retains a 9.4% stake in Legend after the offering.
Other notable shareholders include CAS Holdings, a state-owned holding entity affiliated with the Chinese Academy of Sciences, which owns 29.1% of Legend, and China’s sovereign wealth fund, China Investment Corporation, which holds a 7.7% share post-IPO.
Founded in 1984 with funding from the Chinese Academy of Sciences, Legend formed, and now holds a 30.6% stake in Lenovo, which is now one of the world’s largest producers of personal computers and smartphones.
The firm also oversees a range of subsidiaries including corporate venturing unit Legend Capital, private equity unit Hony Capital and Legend Star, a subsidiary that was originally a joint venture with the Chinese Academy of Sciences, but which has now grown into an early stage investment firm.
Legend intends to use up to 60% of the proceeds from the offering to make strategic investments and acquisitions, and to develop its business. A further 15% to 20% will go to paying back corporate bonds due to mature this year.
The company’s shares opened at HK$43.15 yesterday, only to close at HK$42.95.