First mainland media company to launch IPO
Beijing Media Corporation Limited will be the first Chinese mainland media company to launch initial public offering (IPO).
The Beijing Media Corporation Limited announced in Beijing Sunday that it intends to offer a total of approximately 47,740,OOO H Shares under the global offering, subject to over-allotment option,with an aim to raise a total of 714 - HK$905 million. The price ranges from HK$14.95 - HK$18.95 per share.
The capital raised will be used mainly for the expansion of itsmulti-media platform, including the development of weekend newspaper, specialized periodicals, TV industry, event organizing and acquisition of other media businesses.
It will begin its Hong Kong public offer from Dec. 13, and close at Dec. 16. Dealing of the company's shares is expected to commence on Dec. 22.
The company's current core business is the newspaper advertising, with its principal advertising medium of Beijing Youth Daily, the second largest daily newspaper in Beijing based on circulation.
Sun Wei, president and executive director of the company said that although the editorial business of newspapers is currently restricted from foreign ownership, its controlling shareholder, Beijing Youth Daily Newspaper Agency has granted it an option to acquire any or all of its editorial and publication rights in relation to the newspaper, exercisable from such time as company's ownership and operation are permitted under relative laws.
"With a strong foothold in this growing market, our company is
well-positioned to capture the opportunities and assimilate this potential into
its development strategy to become a leading media company with cross-media
platform," he said.