Shanda Interactive to list game subsidiary on Nasdaq
Shanghai. September 4. INTERFAX-CHINA - Leading Chinese online game operator, Shanda Interactive Entertainment Ltd., will list its game subsidiary, Shanda Games Ltd. on the Nasdaq, according to a Sept. 3 company announcement.
Shanda Games intends to raise a maximum of $800 million through its initial public offering of American depositary shares, though the share price and number have not yet been determined, according to a prospectus filed by Shanda Games to the U.S. Securities and Exchange Commission (SEC) on Sept. 3.
Net proceeds from the offering will be used towards general corporate expenses, including capital expenditure and funding for possible future investments, joint ventures and acquisitions, according to the same prospectus.
Shanda Games currently operates 18 massively multiplayer online role-playing games (MMORPGs) and 11 other online games.
The company has an additional 16 MMORPGs and eight casual games in its product pipeline and a user base of over 9.73 million as of June 30.
Shanda Games generated total revenue of $321.9 million and a net profit of $99.6 million in the first half of 2009, up 51.76 percent and 75.5 percent from the same period of 2008, respectively.
Nasdaq-listed Shanda Interactive is the second online game operator in China to list its subsidiary on a foreign stock exchange.
Chinese online portal and game operator, Sohu.com Inc listed its game subsidiary, Changyou.com Ltd. on the Nasdaq on April 2, and raised $165 million from the IPO.