Stocks News
- Xinhua Finance files for U.S. listing
Date: 26-Feb-2007 Sources: (Shenzhen Daily)
XINHUA Finance Media Ltd. filed with U.S. regulators Friday for an initial public offering (IPO) of 23.1 million American Depositary Shares (ADS) at an estimated price of US$12 to US$14 each.
The company, which produces business and financial news programming, said in a registration statement filed with the U.S. Securities and Exchange Commission that it planned to sell 17.3 million ADS, with stockholders selling an additional 5.8 million.
Xinhua Finance said it expected to receive about US$204 million in net proceeds from the IPO. It will use US$50 million of the funds to repay debt and the rest for acquisitions, working capital and other general corporate purposes.
The company said in the filing that it had not entered advance discussions or negotiations for any potential acquisitions, except for buying the remaining equity of Beijing Perspective.
Xinhua Finance's programming is distributed across television, print media and radio in Beijing and Shanghai. Its advertising sales are supported by its own advertising agency.
For the year ended Dec. 31, the company earned US$3.3 million on US$59 million in net revenue.
JPMorgan and UBS Investment Bank are the lead underwriters for the IPO, and CIBC World Markets, WR Hambrecht Co. and ABN AMRO Rothschild are assisting.
The underwriters have the option to buy an additional 3.5 million ADS to cover overallotments.
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