Tencent publishing unit files for IPO in Hong Kong - Mobile World Live

Tencent publishing unit files for IPO in Hong Kong

04 JUL 2017

A Tencent subsidiary, China Literature, filed for an initial public offering (IPO) in Hong Kong which is expected to raise as much as $800 million, Reuters reported.

China Literature, China’s largest online publishing and e-book company, aims to raise funds for potential acquisitions and expand its mobile reading business, the news agency said.

Martin Lau, president and executive director of Tencent, said in March it was planning to spin off the unit on the Hong Kong stock exchange.

Bank of America Merrill Lynch, Credit Suisse and Morgan Stanley were hired as joint sponsors of the proposed listing. The structure of the deal was not disclosed, but Tencent is expected to hold at least 50 per cent of China Literature after the spinoff and the listing will likely consist of 15 per cent of the company’s enlarged share capital, Reuters said.

China Literature’s business is similar to Amazon’s Kindle store, operating a platform with 8.4 million literary works from 5.3 million writers.

The company posted a net profit of CNY30.4 million ($4.49 million) in 2016, its first, on revenue of CNY2.6 billion, which was up 62.5 per cent from 2015.

Tencent is China’s largest social media and gaming firm.

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Joseph Waring

Joseph Waring joins Mobile World Live as the Asia editor for its new Asia channel. Before joining the GSMA, Joseph was group editor for Telecom Asia for more than ten years. In addition to writing features, news and blogs, he...

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