Lenovo pulls plug on STAR Market IPO application

Lenovo Group Ltd, the world's largest personal computer maker, has withdrawn its plan to list on the Shanghai STAR Market, the company said on Saturday.

In September, HK-listed Lenovo applied to list on the STAR Market to raise about 10 billion yuan (US$1.56 billion). It is the latest Chinese firm to seek a dual listing in Hong Kong and domestic markets, others are SMIC and China Telecom.

The company and its underwriter China International Capital Corp, or CICC, didn't give a reason for the IPO withdrawl.

Lenovo may continue a domestic listing at another destination market such as Shanghai's main board or the new Beijing market, industry officials said.

Lenovo's annual research spending is more than 10 billion yuan but it only accounts for less 3 percent of its revenue. The portion is lower than the companies such as Xiaomi and Inspur.

Lenovo is transforming its business to cloud, data center and artificial intelligence. But its main business is still personal computer manufacture.