Aspire to become a century-old store Lenovo Holdings, is about to usher in the capital market at the age of 31 test

Abstract: Determined to become a century-old store Lenovo Holdings, is about to usher in the capital market at the age of 31 test. March 17, the Wall Street Journal, citing people familiar with the matter, said Lenovo Holdings plans to launch its IPO in Hong Kong in July this year, the IPO financing amount or up to 3 billion U.S.

Aspire to become "Hundred years old shop" Lenovo Holdings, will be in its "31 years old" when the test of the capital market.

March 17, the Wall Street Journal, citing people familiar with the matter, said Lenovo Holdings plans to launch an IPO in Hong Kong in July this year, or as much as $3 billion trillion, which is expected to be one of the largest deals in the region in Asia this year.

Lenovo is planning to submit a listing application to the HKEx in the next few weeks, the source said. Lenovo is working closely with China International Finance Limited and Swiss bank on listing plans.

In response to rumours of a forthcoming IPO, Lenovo held a reply to the first financial journal reporter, saying "no comment on outside rumours." ”

The dream of the Hundred-Year-old store's listing

Promote Lenovo Holdings, or will be veteran Liu "Harvest Mountain." Earlier in the interview, he had revealed that Lenovo will be in 2014 ~2016 the overall listing, Lenovo Holdings after the listing, two years, he will be fully retired.

If Lenovo can get 3 billion dollars from the first round of public offerings, it will be the largest listing in the Asia-Pacific region in the near future.

On the way to the overall listing, Lenovo Holdings has been working hard.

2009 years ago, the Chinese Academy of Sciences held a 65% per cent stake in Lenovo, and in the fall, China's pan-Sea holding group took over 2.755 billion yuan to take over 29% per cent of the CAS holdings. After completing the first step of equity reform, Mr Liu has said he wants Lenovo to go public, and the steps are for subsidiaries to be listed first, followed by the parent company.

By the year 2011, Liu officially resigned from Lenovo Group's chairman, after the handover with Yang, his focus on Lenovo Holdings.

In 2012, Liu said in an interview with the first financial daily that, in addition to the listed Lenovo Group, investment funds, Lenovo Holdings will also expand the number of unlisted specific industries.

Liu also revealed that Lenovo's listing has solved the problem of corporate owners, after the employee shareholding, 35% of the equity has been transferred to the old employees, and after the listing, the new management will have the opportunity to take stock and get incentives.

By the year 2014, according to Lenovo Holdings in 2013 annual report disclosed that the company has been approved by the Chinese Academy of Sciences in January 2014, agreed that the company by the "holding company" to change to a joint-stock limited, and in February formally changed to Lenovo Holdings Limited. The move was seen as a preparation for the listing of Lenovo Holdings.

In the same year, Mr Liu said the timetable for Lenovo's listing had already been set for 2015 years.

In terms of equity structure, according to the 2013 annual report published by Lenovo, the Chinese Academy of Sciences remains the largest shareholder, holding 36% per cent, with Beijing holding a far stake of 24%, a 20% stake in the pan-Sea holdings and a 8.9% stake in the Beijing Union permanent Trust. Among individual shareholders, Mr Liu's stake is 3.4%, with President Zhu Linan holding 2.4%, senior Vice President Chen 1%, senior vice President Tang Xudong holding 1% and senior vice President Ning holding 1.8%.

Lenovo's choice of the listing location, Liu has mentioned the mainland A shares, Hong Kong and so on. However, Lenovo's core listed companies such as Lenovo Group, China Digital More in Hong Kong capital market, Lenovo investment in recent years, the core assets of China rental car also landed in HKEx. For now, Lenovo should be listed in Hong Kong.

How big is Lenovo holding?

How big is Lenovo's holdings from a single it field to a diversified expansion to a large integrated enterprise?

Lenovo's 2013 annual report, published in June 2014, showed that, in 2013, Lenovo held a revenue of 244 billion yuan, an increase of 7.7% per cent, and a net profit of 2.08 billion yuan, an increase of 20% per cent. In 2012, Lenovo held a revenue of 226.65 billion yuan, an increase of 19.8%, net profit of 1.73 billion yuan, increased by 30.1% per cent.

Historically, Lenovo was founded in 1984, and until 2000, it has only developed in a single it field. Since 2001, Lenovo has become the parent company of Lenovo Group, a single major shareholder of Lenovo Group, and Lenovo Holdings has become a diversified investment holding company, including "industrial" and "investment" two sectors.

Industrial sector, is Lenovo holdings in some industries in the direct investment of enterprises to provide value-added services, investment plate, is Lenovo Holdings using its own funds and other institutions in the industry funds, to its two independent investment companies to operate and manage, one is the private venture capital of the June-Lian, The other is the investment of Investment fund, investment, after the end of the period, will be invested in the sale of enterprises to obtain returns. This "investment + industry" model, through the interaction between two sectors, so that Lenovo holding a steady stream of cash, while the financial investment can also become Lenovo's core asset projects, one of the high-quality sources.

"The ship is turning, but when the boat is big you can make a boat out of it, you can prop up the boat into a ship, and the ship itself changes gradually." "About the Lenovo Holdings model," Liu said in an interview with reporters earlier.

As you can see, Lenovo's strategic investment platform involves it, real estate, modern services, financial services, agricultural food, chemical new materials, such as several major areas, member enterprises include: Lenovo Group, June Lian Capital, Hong Yi Investment, financial science and technology, the Shenzhou car rental, Baibo oral, Zheng Qi financial and other more than 10 subsidiaries.

Specifically, in Lenovo's large family, as a member of the company's Lenovo Group, the performance has maintained a trend against the city. In the investment layout of Lenovo Holdings, Lenovo Holdings's June-Lian Capital and Lenovo star incubator Investment and Lenovo Group's joint venture investment project-Le tease game last year, after successfully landing in the capital market, achieved a return of about 70~80 times.

Lenovo's strategic investment in the Shenzhou car rental has also been completed in Hong Kong listing, last November 24, its market value of more than 30 billion Hong Kong dollars. In addition, Lenovo holdings in modern agriculture, consumption and modern services, internet finance and other hot areas have already begun to layout.

Overall, this is more like a step-pull strategy. Some analysts pointed out that Lenovo is through the investment of high profit margins of the industry to pull Lenovo Group and other Low-margin industries, and then through the low profit margins of the industry growth, to achieve expansion. In the industry with long investment return cycle, the enterprises with low gross profit margin but with scale effect can provide support for the whole business.

Industry analysts believe that Lenovo holding a number of investment, including the layout of some hot areas, for the future listing valuation will have a better support, whether short-term market concepts or longer-term value investment, will form structural support, such as consumption, health, are the future investment hotspot. "But for Lenovo, there will also be a consolidation challenge, and while Lenovo Holdings is now offering an overall listing, the future of its subsidiaries will still be a timing spin-off." ”