(Yicai) March 12 -- Shares in Li Ning soared as much as 20 percent today after a media report said that the founder of the Chinese sportswear firm might privatize the company to boost its valuation.

Li Ning’s share price [HKG:2331] closed up 8 percent at HKD22.10 (USD2.80) apiece today, giving the firm a market capitalization of HKD57 billion (USD7.3 billion). Earlier in the day it hit HKD24.55. The stock has lost 60 percent of its value in the past 12 months.

“Chinese billionaire entrepreneur and Olympic champion Li Ning is considering taking his namesake sportswear company private from the Hong Kong stock exchange,” Reuters reported today, citing people familiar with the matter.

“A number of private equity firms, including TPG, PAG and Hillhouse Investment, have been tapped to see if they are interested in joining as an investor,” it added.

“Li Ning feels his company is undervalued in Hong Kong,” Reuters said. And this could be the reason why the 61-year-old is contemplating privatizing the Beijing-based firm.

Li Ning has not yet commented on the report.

Li Ning, who is chairman, executive director and co-president of the company, owns more than 10 percent equity through a family-owned firm Viva China Holdings. He founded the sports brand in 1990 and floated it on the Hong Kong bourse in 2004.

Li Ning logged a 3 percent dip in net profit in the first half last year from a year earlier to CNY2.1 billion (USD292.7 million), while revenue surged 13 percent to CNY14 billion (USD2 billion), according to its interim results.

Editor: Kim Taylor