The parent company of Lenovo Group – Legend Holdings — has been given approval by Hong Kong’s stock exchange for an IPO valued at an estimated $2 billion, Reuters reported.

Legend will kick off a roadshow later in the month to pitch to institutional investors.

In additional to owning Hong Kong-listed Lenovo, the world’s largest PC maker and third biggest smartphone producer, Legend controls Chinese property developer Raycom Real Estate, private-equity house Hony Capital and VC firm Legend Capital.

Lenovo reported last month that Q4 net income fell 37 per cent to $100 million, year-on-year, as it absorbed major acquisitions in the shape of Motorola Mobility and IBM’s low-end server business.

Goldman Sachs and Morgan Stanley will underwrite the Hong Kong IPO, while Legend has lined up China International Capital and UBS AG as joint sponsors.

Meanwhile, Chinese Premier Li Keqiang said yesterday the government aims to promote local listings of startup firms by pushing a “special ownership structure” and easing regulations for domestic listings.

He also urged local governments to offer tax incentives to startup firms, incubators and angel investors to boost innovation and funding for companies in promising sectors.

Foreign ownership in the country’s internet sector is blocked. The variable interest entity (VIE) structure was created to satisfy ownership requirements of overseas security regulators without technically breaking Chinese law, Reuters said.

Firms such as Alibaba, Baidu and Tencent have listed under this structure.