Lenovo looks to develop cloud services and artificial intelligence applications. © Reuters SHUNSUKE TABETA, Nikkei staff writer October 2, 2021 00:48 JST | China Copy Copied BEIJING — Chinese PC leader Lenovo will list on Shanghai's tech-focused market, aiming to raise 10 billion yuan ($1.54 billion) to develop leading-edge businesses outside of hardware.

Lenovo plans a public offering using Chinese depositary receipts in the STAR Market, the Shanghai Stock Exchange's answer to Nasdaq. The company will float no more than 10% of the share capital.

The offering is part of a strategy to diversity funding sources, as Lenovo already trades on Hong Kong's stock exchange. The upcoming float appears to be the first dual listing using Chinese depositary receipts, according to local media reports.

Lenovo's application, which was submitted and approved Thursday, said that roughly half of the 10 billion yuan will be used to develop new products and services.

Examples cited include cloud services, digital solutions for industry and development of artificial intelligence applications. The money also will fund strategic investment projects, according to the filing.

Lenovo, which makes the ThinkPad, commands the world's largest share in the personal computer market. The group looks to leverage that strength to expand its services and solutions business.

During the quarter ended June, Lenovo increased research and development spending by 40% from a year earlier.

Lenovo "will spend twice as much each year over the next three years" on R&D, CEO Yang Yuanqing told Nikkei recently.