China.com IPO: It LOSES Big Bucks, while #ZSUN# MAKES Big Bucks...
HONG KONG, June 28 (Reuters) - Hongkong-based China.com
Corp, an Internet portal firm planning an initial public
offering on the U.S. Nasdaq market, said on Monday it had
already raised $42 million from private placements this year.
In the prospectus for its proposed listing, China.com said
it expects to obtain $56.3 million in net cash proceeds,
assuming a price of $15 a share.
The company said it will offer 4.2 million shares in a range
of $14 to $16 a share. On Friday, it said it would sell 4.247
million shres, but cut the number back to eliminate odd lots.
Underwriters Lehman Brothers, Bear Stearns and Co and
E*Trade Securities Inc were granted a 30-day option to purchase
up to 630,000 additional shares to cover over-allotments.
China.com operates four major portal websites, which offer
Chinese- and English-language content, electronic mail and otherservices.
The company posted a pro-forma net loss of $11.01 million in
1998 on revenues of $3.45 million" We have incurred significant net losses since inception and expect to continue to incur significant losses on a quarterly and annual basis for the foreseeable future," China.com said inthe prospectus.
The prospectus cites estimates that Internet use in the
Asia-Pacific region will grow by 33.4 percent annually from 1998through 2003.
China.com said it plans to launch an on-line shopping mall
on its hongkong.com portal in the third quarter of 1999. The
mall host various Internet retailers, earning a commission on
each sale transacted.
It expects to launch a co-branded Chinese-language retail
website with The Bigstore.com in the fourth quarter, at
www.thebigstore.china.com. The prospectus discloses the shareholding structure for the first time.
New World Infrastructure Ltd is the largest single
shareholder with 22.7 percent of the pre-IPO shares, followed by
Asia Pacific Online Ltd, a firm controlled by the family of
Peter Yip, China.com's chief executive and vice chairman, with18.5 percent.
China's official Xinhua news agency owns 13.6 percent, while
America Online owns 10.0 percent.
China.com said the loss of Xinhua's support could harm the
ability of its websites to penetrate the mainland China market
and said its relationship with Xinhua could restrict its ability
provide information "since information may be considered
offensive to Chinese regulatory authorities."
Hong Kong's Paul Y Properties Group Ltd , owns 2.9
percent. Shares in Paul Y Properties and Paul Y-ITC Construction
Holdings Ltd were suspended in Hong Kong on Monday
pending an announcement about the group's investment inChina.com.
Following is a list of the major shareholders in China.com,
with their ownership stakes now and after the IPO.
SHAREHOLDER PCTSTAKE NOW STAKE AFTER IPO
New World Infrastructure 22.7 18.2
Asia Pacific Online Ltd 18.5 14.8
Xinhua News Agency 13.6 10.9
America Online Inc 10.0 8.0
24/7 Media Inc 9.5 7.6
CMC Magnetics 4.4 7.6
Edelson Technology Partners 3.5 2.8
New World Cyberbase 2.9 2.4
Directors, executive officers* 25.9 20.8
*Includes shares of Asia Pacific Online Ltd, which are
controlled by family of China.com chief executive Peter Yip.
There are 12 directors and executive officers in this group. The
remining shares are held by various individuals.
((David Lawder, Hong Kong Newsroom +852 2843-6321, Fax +852
2845-0636 hongkong.newsroom@reuters.com))
|
