Tencent unit gains from HK frenzy

China Literature initial public offering gets oversubscribed by 620 times

Tencent-backed China Literature, mainland's largest online publishing and e-book company, has proven to be a money-spinner of sorts at the bourses after it raised about HK$520 billion ($66.7 billion) from its planned initial public offering in Hong Kong on Wednesday.

The company seems to have gained from the burgeoning appetite for new economy companies in Hong Kong as it raised the second largest amount through an IPO in the city's history. It had planned to raise $1.1 billion from the IPO. China Literature saw its retail tranche oversubscribed 620 times after it closed for subscription on Tuesday. With this it has become the most popular IPO in Hong Kong after China Railway Construction Corporation, which raised HK$535.4 billion in 2008.