The online news portal of the People's Daily plans to raise about 527 million yuan ($83.52 million) through an initial public offering (IPO) in Shanghai.
People.cn, which competes with more commercially operated rivals such as Sina Corp and Sohu, aims to raise cash by selling 69.1 million new shares, or 25 percent of its enlarged capital base, to fund expansion, according to a preliminary prospectus posted on the website of China's securities regulator Monday.
The China Securities Regulatory Commission will vet people.cn's IPO application Friday.
China's State Xinhua News Agency also plans to list its online portal in Shanghai to raise about 1 billion yuan, two sources with knowledge of the deal told Reuters last month.
People.cn faces "big challenges" from commercial websites such as Sina and Sohu, which benefit from the opening of the Internet services industry as well as ample funding, the company said in its prospectus.
Its website www.people.com.cn has 19,608 visitors per one million people, compared with Sina's traffic volume of 247,343 visitors per one million people, according to the prospectus.
People.cn plans to use the IPO proceeds to upgrade technology, develop mobile services and strengthen its editorial team.
CITIC Securities is the IPO underwriter.
Reuters
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