China Reading set to list

Source: Xinhua | 2017-07-05

CHINA Reading, the country’s biggest online literature firm, plans to raise up to US$800 million through an initial public offering in Hong Kong, according to a filing to the Hong Kong Stock Exchange.

China Reading has more than 8.4 million titles and 5.3 million authors, with 175 million active users.

In 2016, it generated revenue of 2.6 billion yuan (US$377 million), a growth of 59 percent year on year. Net profit was 30.4 million yuan last year, compared with a net loss of 354 million yuan in the previous year.

The company plans to raise between US$600 million and US$800 million through the IPO.

Tencent, China’s top dot-com firm, has a controlling stake in China Reading. Other major investors include private equity firms Carlyle Group and Trustbridge Partners. The firm is expected to use the funds from the IPO for expansion.