Source: ZOL Data Center

By Liang Fei

PC maker, Shenzhen Hasee Computer Co, is planning to issue 81 million shares on the Shenzhen Stock Exchange's ChiNext board, according to a circular of the China Securities Regulatory Commission (CSRC).

The company's application is expected to be reviewed by the commission on Tuesday.

According to Hasee's prospectus, after the public offering, Hasee CEO Wu Haijun would still maintain control with an 83.46 percent stake. 

Li Weidong, research director with Beijing-based research institute ChinaVenture, asserted the firm's IPO may perform well, given Hasee's competitive advantage in the low-end market.

Capital raised in the public offering would be partly injected into the company's research and production base in Kunshan, Jiangsu Province, as the project needs 1.49 billion yuan ($226.94 million) in investment, the Hasee prospectus noted.

In 2001, Hasee entered the market as a low-priced laptop provider. Currently, the company owns 57 branch companies throughout the country, and in 2010 it sold some 1.32 million computers.

The company said in the prospectus it aims to become one of the top three PC brands within three years. Sales volume is expected to grow to 5 million a year, or a 10 percent market share domestically.

"As a domestic brand, Hasee enjoys certain advantages in government purchases or projects like 'home appliances to rural areas,' but it will be a tough job for Hasee to move into the top three," said ChinaVenture's Li. In the first three quarters of 2010, Hasee reported a 3.1 percent market share, with Lenovo Group, Asustek Computer Inc, and Dell Inc as the top three brands in the Chinese PC market.

"The company does enjoy advantages in rural areas where brand-name laptops are pricey, but it's hard to cultivate brand loyalty from this group," said Li.

In addition, portable devices like tablet PCs and smartphones also pose a challenge to laptop producers.

In the fourth quarter of 2010, total sales of tablet PCs and smartphones, have for the first time exceeded the total number of laptops and computers sold combined.