Chinese cable TV operator Jishi Media Co Ltd will begin bookbuilding for its 2.2 billion yuan ($347.1 million) initial public offering in Shanghai on Tuesday, it said, braving a sluggish stock market for fundraising.
Jishi Media, the cable TV operator in the northwestern province of Jilin, will hold roadshows in Shanghai on Wednesday, Shenzhen on Friday and Beijing on Feb 6, it said in a prospectus posted on the stock exchange website late on Sunday. The final pricing will be set on Feb. 13.
The company is looking to sell up to 280 million shares, or 20 percent of its capital, to raise about 2.2 billion yuan to fund two cable network projects, it said.
A number of large companies have been forced to either price their IPOs at the bottom of their indicative ranges or downsize the offerings due to poor investor interest for new shares amid a falling stock market.
Jishi Media, however, may be more attractive than other IPOs due to the company's monopoly status in Jilin province, rapid profit growth and investor enthusiasm towards media stocks, reflected in the strong pricing and debut of Jiangsu Phoenix Publishing & Media Corp Ltd in November.
The provincial cable TV operator has seen annual profit growth averaging 208 percent during the 2008-2010 period, thanks to a government-led campaign to transform analogue TVs into digital in the province, although the company has warned that the benefits of the reform could gradually fade.
The company said its earnings doubled in 2010 after surging 373 percent in the previous year.
Citic Securities is the lead underwriter for the deal. ($1 = 6.3390 Chinese yuan)