Tencent backed E-reading firm consider IPO
Tencent are a very diverse Chinese holding company, with businesses under its control that work in media, entertainment, internet and many other service areas. And, it has been widely reported that one of their online literature businesses will be looking to launch an initial public offering in the coming months.
China Reading Ltd isn’t the most imaginative name for an online literature firm, but it is certainly performing very well. Now, it has emerged that the Tencent-backed business are asking different investment banks to pitch for a role in arranging their initial public offering, which could raise as much as $500 million.
Citing ‘people with knowledge of the matter’, Crystal Tse has reported in Bloomberg Technology that the company will be looking to sell shares in China Reading potentially as early as later this year.
She says: ‘An offering would follow Meitu Inc.’s $629 million IPO in December, the biggest first-time share sale in the city by a technology company since 2007, data compiled by Bloomberg show. Meitu, whose shares have risen 7.8 percent since then, was considered a test case for technology companies seeking to list in Hong Kong.’
Tencent Holdings share price in 2017
As of 08 February 2017: 204.00
SOURCE: Yahoo Finance
China Reading was valued at around $2 billion back in 2014, and it now boasts around four million contributors whilst playing host to over 10 million novels, according to their website. The firm has more than 600 million registered readers across its nine different e-reading platforms.
Dominion holds Tencent Holdings in its Global Trends Ecommerce Fund.
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