China Regulator Reprimands CICC for Mishandling Lenovo $1.5 Billion IPO Application
31st December 2021 | Hong Kong
The China Securities Regulatory Commission (CSRC) had reprimanded 5 investment bankers from China International Capital Corp (CICC) for mishandling Lenovo $1.5 billion IPO application on Shanghai STAR Market. In the regulatory interview, CICC investment bankers were reprimanded for not conducting adequate due diligence in assessing eligibility of Lenovo’s IPO on STAR market, relying only on documents provided by Lenovo and as a result, violating the regulatory requirement as IPO sponsor. Lenovo just days after receiving approval from China regulator, had to withdraw the application to list on Shanghai STAR Market as it is not eligible to be listed on the Shanghai STAR Market due to criteria including minimum requirement of R&D spending. (IPO ~ Initial Public Offering)
“ China Regulator Reprimands CICC for Mishandling Lenovo $1.5 Billion IPO Application “
Lenovo on Shanghai STAR Market
Lenovo is the world’s largest personal computer maker, and had plan to raise $1.5 billion (CNY 10 billion) on Shanghai STAR Market to fund artificial intelligence, cloud services projects and industrial investments. The STAR Market stands for The Shanghai Stock Exchange Science and Technology Innovation Board, listing China’s fast growing technology companies. It is China’s version of United States Nasdaq.
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