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Lead Underwriter Prices People's Daily Online IPO at CNY17.2-19.2

04-06 16:54 Caijing
Based on the price range given by Citic, People's Daily online could raise as much as 1.189 -1.327 billion yuan via the IPO

The news portal of People's Daily should set its price range for an initial public offering at 17.2-19.2 yuan per share, at 25-39 times forward earnings, Citic Securities, the lead underwriter for the state-owned website said.

Based on the price range given by Citic, People's Daily online could raise as much as 1.189 -1.327 billion yuan via the IPO, more than double of the planned 527 million yuan in its prospectus.

The company wants to sell no more than 69.1 million new shares, or 25 percent of its enlarged capital, ahead of a listing on the Shanghai Stock Exchange, it said in as statement on Thursday.

It will start a roadshow for its IPO on Friday, and subscriptions will be open on April 17-18, it said.

The company plans to use the IPO proceeds to expand into wireless services, upgrade technology and beef up its editorial team.

A host of state-owned news portals including Xinhua.net, CNTV and other seven websites run by local governments is on the way to restructure themselves and tap capital markets.

Xinhua aims to go public by the end of this year, and hopes to raise some 1 billion yuan, according to earlier reports.

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