MORRISVILLE – Lenovo’s attempt to raise nearly $1.6 billion in cash for investments in new and emerging technology this fall has led to a “rebuke” of China’s top investment bank, according to a report by Bloomberg News.
Lenovo withdrew its plans for the capital raise in October which had included a listing on China’s equivalent of the Nasdaq, as Bloomberg noted.
“[T]aking into consideration the Company’s business scale and complexity, the validity of the financial information in the Prospectus may lapse during the vetting process of the application,” Lenovo said in a regulatory filing on Oct. 10.
“Also, having thoroughly considered the relevant capital market conditions such as the latest circumstances in connection with the listing, the Company decided to withdraw the application for listing and trading of CDRs on the STAR Market.
“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. The Company will continue to monitor the situation and will make further
announcement(s) on any material updates and developments in respect of the Proposed Issuance and Admission of CDRs as and when appropriate.”
This week, Chinese regulators “rebuked” the banking firm – China International Capital Corp. – saying its due dilligence efforts on Lenovo were not “sufficient and accurate enough,” Bloomberg noted.
Lenovo, the world’s top PC manufacturer and a global leader in supercomputing and other services, operates dual headquarters in Beijing and Morrisville.
