Tencent unit China Literature launches up to $1.1b Hong Kong IPO

China Literature Ltd, China’s largest online publishing and e-book company, launched an initial public offering for up to $1.1 billion on Monday, seeking funds for acquisitions and to expand its digital publishing business.

Tencent Holdings Ltd controls China Literature with a 62 percent stake. Private equity firm Carlyle Group LP owns 12.2 percent while Trustbridge Partners, a private equity firm founded by Shujun Li, the former CFO of Shanda Interactive, holds 6 percent.

According to a term sheet for the IPO seen by Reuters, China Literature and some of its shareholders are offering 151.37 million shares in an indicative range of HK$48 to HK$55 each.

The new shares will be equivalent to 16.7 percent of China Literature’s enlarged share capital, with its market capitalization expected to be up to $6.4 billion.

Tencent and China Literature did not immediately reply to a Reuters request for comment on the IPO terms.

The China Literature IPO is the latest in a series of high-profile technology listings in Hong Kong.

Last month, ZhongAn Online Property & Casualty Insurance Co’s hit the market with a $1.5 billion IPO.

And in coming days, Razer Inc, a gaming hardware maker backed by Intel Corp and Hong Kong billionaire Li Ka-shing, is set to launch an IPO for up to $600 million.

China Literature has a business akin to Amazon.com Inc’s Kindle Store, operating a platform with 9.6 million literary works from 6.4 million authors.

Bank of America Merrill Lynch, Credit Suisse and Morgan Stanley were hired as sponsors for the IPO, with China International Capital Corp Ltd (CICC) and JPMorgan also working as joint global coordinators.

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Tencent’s online publishing unit files for Hong Kong IPO worth $800m

Reuters

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.