LENOVO Group Ltd. saw its Hong Kong-listed stock fall more than 17 percent yesterday, its biggest intraday decline in over a decade, after the Chinese technology giant withdrew its application for a 10 billion yuan (US$1.55 billion) share listing in Shanghai.

The world’s biggest personal computer maker Friday said it would withdraw its application, days after it had been accepted by the Shanghai Stock Exchange’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.”

“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.

Lenovo, which first announced plans to list Chinese depositary receipts on the STAR market in January, had sought to raise roughly 10 billion yuan to fund artificial intelligence and cloud services projects as well as industrial investments.

The stock had been among the best performers on the Hang Seng Technology Index this year prior to yesterday’s slump.

“The withdrawal of the listing means that it would have to look for other fundraising alternatives,” said Justin Tang, the head of Asian Research at United First Partners in Singapore.

“It might be that investors are concerned this could take the form of a dilutive rights issue.”

(SD-Agencies)