Legend Holdings Corp., a Chinese investment firm, is eyeing a Hong Kong listing with its aim to raise $1.96 billion. Experts claim that this is part of the firm’s goal of boosting presence in core business apart from information technology (IT).
Legend is the parent company of the world's biggest personal computer maker, Lenovo Group.
The firm is expected to issue shares worth $353 million at a price range of HK$39.8 to HK$43, according to a Wall Street Journal report released on Friday.
The report also said that Legend's move could be one of the largest IPOs in the Hong Kong stock market this year.
The listing is regarded as a significant move, as it will show the group's goal of venturing more opportunities in various sectors apart form IT, Wang Yaqian, an analyst affiliated with Beijing-based market research consultancy iResearch, told the Global Times.
"Once listed, the company will benefit from a new investment channel," Wang remarked.
According to the IPO prospectus it filed in April, Legend holds 31 percent of the shares of Lenovo. It also has an investment in five different financial service-providing firms.
Furthermore, the firm has also proposed a total of around $154 million in 14 equity investments since 2014. It also targets an Internet medical service provider, the prospectus added.
Legend's total revenue in 2014, which is worth 289.5 billion yuan, is majorly composed of revenues from IT businesses, such as cloud services and consumer electronics, comprising about 94 percent.
However, the gross profit margins of the firm's property and chemical businesses exceeded 30 percent of its total profit margins last year.