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Lenovo secures $2 billion investment from Saudi Arabia’s Alat, establishes MEA headquarters in Riyadh

Lenovo will look to increase its presence in the MEA region via the partnership. Credit: Lenovo

On Wednesday, Chinese PC maker Lenovo ↗ announced a strategic partnership with Alat, a subsidiary under Saudi Arabia’s Public Investment Fund (PIF) focused on transformative technology investments and sustainable manufacturing, with Alat proposing a $2 billion zero coupon convertible bonds investment in Lenovo. 

Lenovo will establish its Middle East and Africa (MEA) regional headquarters in Riyadh, the capital of Saudi Arabia, which will include a customer center and R&D center for the region. The company will also build a new manufacturing base for personal computers and servers in Saudi Arabia.

Why it matters: As a wholly-owned subsidiary of PIF, Alat aims to leverage this collaboration to drive industrial transformation in Saudi Arabia, positioning the country as a world-class hub for sustainable technology manufacturing. Lenovo will look to increase its presence in the MEA region via the partnership.

Details: Lenovo will issue $2 billion in convertible bonds to Alat, using the proceeds to repay debts and for corporate purposes, according to the announcement ↗

  • The bonds mature in three years and can be converted to equity at HK$10.42 ($1.33) per share, a 10% premium over the 30-day average VWAP (Volume Weighted Average Price). Issuance is contingent on Lenovo shareholder and regulatory approvals. Currently, Lenovo has approved a proposal to issue 1,150,000,000 warrants at a price of HK$1.43 ($0.18) per warrant, according to the statement.
  • PIF, a sovereign wealth fund, manages assets exceeding $700 billion, according to Lenovo. The agreement between the two parties stated that Alat will have the authority to nominate a non-executive director candidate to join Lenovo Group’s board of directors through the customary director appointment procedures of Hong Kong.
  • “Through this powerful strategic collaboration, Lenovo will have significant resources and financial flexibility to further accelerate our transformation and grow our business by capitalizing on the incredible growth momentum in the MEA region,” said Lenovo CEO Yuanqing Yang.
  • “As Lenovo establishes its regional headquarters in Riyadh and a clean energy manufacturing base in Saudi Arabia, we expect its growth to accelerate in the MEA region,” said Alat CEO Amit Midha.

Context: In the first quarter, global PC shipments increased around 3% year-on-year to reach 57.1 million units after eight consecutive quarters of decline, according to market research firm Counterpoint Research ↗. Lenovo secured the leading position in the global market with a 24% share, reaching 13.7 million units, up by 8% year-on-year.

  • The market intelligence firm IDC ↗ predicts that the IT and business services market in the MEA region is expected to reach nearly $38 billion in 2027, driven by the continuous increase in large-scale projects and rapid economic development in the region.


Jessie Wu is a tech reporter based in Shanghai. She covers consumer electronics, semiconductor, and the gaming industry for TechNode. Connect with her via e-mail: [email protected].
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