Rumor: Online Karaoke SNS 9158 Plans H2 2014 HK IPO
Mpfinance.com, 2/12/14
According to an industry insider, Hangzhou-based Tiange Group, operator of online karaoke SNS 9158.com, online video chat platform Sina Show (show.sina.co.cn), and microblog-based interactive video community V-girl (vgirl.weibo.com), plans to raise approximately USD 300 mln (HKD 2.34 bln) through an initial public offering on the Hong Kong Stock Exchange (HKSE) as early as H2 2014. Chinese internet company Sina (Nasdaq: SINA) is Tiange's largest shareholder.
The company has hired Credit Suisse and China Finance to act as underwriters for the offering, which the two firms have already started to prepare, according to the source.
The company's major products all operate primarily in the online video chat space, namely Sina Show, V-girl, and its flagship service 9158.com, which allows users to sing in online virtual karaoke rooms. Tiange collects fees from users for sending virtual gifts to other singers, with gifts ranging in price from RMB 0.5 to RMB 600. Tiange President Fu Zhengjun established the company in 2005.
Tiange entered the mobile gaming market in 2013, participating in the development of Three Kingdoms-themed card strategy iOS game Jiang Sanguo. Tiange recorded revenues of RMB 600 mln and RMB 1 bln in 2011 and 2012, respectively. The company posted profit of RMB 200 mln in 2013, a new high mark for the company.
Tiange received USD 20 mln in funding from IDG in 2009 and USD 30 mln from Sina in 2010, respectively. As part of the investment, Sina transferred its Sina Show brand to Tiange, while becoming the largest shareholder in the company.
According to the source, Tiange originally planned to list on the Nasdaq exchange, but recent scrutiny of US-listed Chinese companies has led the company to turn to Hong Kong.
Editor's Note: For more information on this topic, please see "Rumor: Online Karaoke SNS 9158 Plans U.S. Market Entry," MD 5/02/13 issue.
Keywords: Tiange V-girl Jiang Sanguo mobile gaming Internet IPO Hong Kong Stock Exchange karaoke online video 9158.com Sina Sina Show Fu Zhengjun
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