Netease Finance, 1/05/10
According to a report in the China Daily, an anonymous source revealed that People's Daily subsidiary People's Daily Online is planning to raise RMB 800 mln through an initial public offering on the Shanghai Stock Exchange.
The source indicated that the company plans to issue 40 mln shares at RMB 15 to 20 per share to support future diversification of website content. Currently, the company is still working to attract key investors. The company has already approached over 10 potential investors and has reached agreements with China Mobile (NYSE: CHL; 0941.HK), China Unicom (NYSE: CHU; 0762.HK; 600050.SH), China Telecom (NYSE: CHA; 0728.HK), insurance group China Life Insurance, and some private equity funds.
People's Daily Online plans to expand its wireless value-added services, as well as its online video and opinion poll services.
Editor's Note: According to China Business News, CITIC Securities will be lead underwriter for the People.com.cn IPO. In 2009, People's Daily Online recorded RMB 22 mln in profits, and estimates profits in 2010 and 2011 will reach RMB 70 mln and RMB 100 mln, respectively.