Chinese online media provider and game operator Shanda Interactive's (Nasdaq: SNDA) wholly owned online literature subsidiary, Cloudary Corporation (formerly known as Shanda Literature), reportedly plans to raise up to USD 500 mln in an initial public offering on a U.S. stock exchange in the second half of 2011. Merrill Lynch and Goldman Sachs will serve as lead underwriters.
According to another source close to Shanda, Cloudary will IPO in June and Cloudary's CEO Hou Xiaoqiang holds only 1% of the company's shares. Shanda Interactive expects to maintain a controlling stake following the IPO.
Editor's note: for more background on this topic, please see "Shanda Literature Subsidiary Registers For Possible U.S. IPO" MD 4/19/11 issue.