China's largest online literature company eyes HK listing

Updated 2017-10-24 14:31:55

China Literature Ltd, an online publishing and e-book company that was split from Chinese tech conglomerate Tencent, launched its road show for an IPO (initial public offering) in Hong Kong on Monday.

The move is expected to raise .1 billion, news agency Reuters said.

The company plans to issue 151 million shares at between HK (.15) and HK (.05) per share, news media Securities Times citing China Literature's files, said. The joint sponsors of the issuance are Morgan Stanley, Bank of America Merrill Lynch and Credit Suisse.

After it is listed on the Hong Kong Stock Exchange on Nov 8, China Literature's shares will be the most expensive new entry in the market this year, Securities Times said.

The capital will be used to expand its online reading businesses and marketing campaigns as well as invest in entertainment products developed on online novels.

Currently, Tencent holds 65.38 percent of China Literature's shares, while private equity firms Carlyle Group, 12.2 percent, and Trustbridge Partners, 6 percent, and others own the rest.

According to Securities Times, Tencent will seek to hold at least 50 percent of China Literature's shares after the company goes public next month.

As China's largest online literature-focused company, China Literature has more than eight well-known online literature websites in the country, and cooperates with 6.4 million authors to manage their 9.6 million works.

In the first half of this year, the company's revenue increased 92.5 percent to 1.9 billion yuan (7 million), compared with the same period of last year, and its profit was 214 million yuan in the same time, according to China Literature's financial report.

However, the company warned investors in its prospectus that although the company runs many online websites, not all of them have official license that allows publishers to run online literature services.

Also in the News

Nicole Kidman Recalls Oscar Glory: Loneliest Time
Showbiz2016/06/16 13:58March 21 2019 04:08:51

Nicole Kidman Recalls Oscar Glory: Loneliest Time

Attending Shanghai International Film Festival, Nicole Kidman talks about her role in "Grace of Monaco".

Labor Day Travel Peak Starts
Also in the News2014/05/01 12:16March 21 2019 04:08:51

Labor Day Travel Peak Starts

Johnny Depp Delivers a Speech 'Evolve the Future' in 'Transcendence'
Also in the News2014/04/18 13:18March 21 2019 04:08:51

Johnny Depp Delivers a Speech 'Evolve the Future' in 'Transcendence'

Hollywood star Johnny Depp's speech in the upcoming new film "Transcendence" has been disclosed on Friday, April 11th.

China World Business Sports Showbiz Audio
C4 My Chinese Life The Sound Stage China Revealed Showbiz Video Travel Video
China World Fun Travel Entertainment Sports
Beijing Shanghai Guangzhou
Live Music Opera & Classical Movies Traditional Shows Exhibitions
Learn Chinese:
Chinese Studio Living Chinese Everyday Chinese Just For Fun Chinese Culture Buzzwords