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China Daily Website

Mobile games group to receive Nasdaq introduction

Updated: 2012-09-25 21:49

China Mobile Games and Entertainment Group Ltd is to land on Nasdaq on Tuesday by way of introduction through its Hong Kong-listed parent company VODone Telemedia Co Ltd.

According to the Shanghai Securities Journal, VODone will spin off about 6.7 percent of its shares in CMGE to investors. The listing does not touch upon any financing and is subject to the approval of the US Securities and Exchange Commission.

Listing by way of introduction allows a company to list its shares on one stock exchange without necessarily conducting an initial public offering of its shares and incurring costs. It applies when the securities to be listed are already traded or will be traded on another stock exchange, or a holding company is formed and its securities are issued in exchange for the securities of one or more listed issuers.

CMGE is by far the largest mobile game developer in China by revenue, accounting for 19 percent of the domestic market, according to data from consultancy Analysys International.

The prospectus filed to the SEC, showed the total revenue of CMGE hit 243 million yuan ($38.5 million) and net profit reached 163 million yuan at the end of 2011.