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Lenovo stock drops 17% after withdrawing Shanghai listing application

Published 10/11/2021, 01:13 AM
Updated 10/11/2021, 01:15 AM
© Reuters. FILE PHOTO: An employee gestures next to a Lenovo logo at Lenovo Tech World in Beijing, China November 15, 2019. REUTERS/Jason Lee
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SHANGHAI (Reuters) - Lenovo Group (OTC:LNVGY) Ltd saw its stock fall more than 17% on Monday, its biggest intraday decline in over a decade, after the Chinese technology giant withdrew its application for a 10 billion yuan ($1.55 billion) share listing in Shanghai.

The world's biggest personal computer maker on Friday said it would withdraw its application, days after it had been accepted by Shanghai's STAR Market.

On Sunday, Lenovo said it had done so because of the possibility of the validity of financial information in its prospectus lapsing during the application's vetting. It did not detail reasons why the information may no longer be valid.

It also cited "relevant capital market conditions such as the latest circumstances in connection with the listing."

© Reuters. FILE PHOTO: An employee gestures next to a Lenovo logo at Lenovo Tech World in Beijing, China November 15, 2019. REUTERS/Jason Lee

"The group's business operations are in good condition as usual. The withdrawal of the application is not expected to give rise to any adverse impact on the financial positions of the group," Hong Kong-listed Lenovo said in the Sunday statement.

($1 = 6.4368 Chinese yuan renminbi)

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