Pacific Online plans HK listing

CHINESE IT information portal Pacific Online Ltd plans to raise as much as HK$1.2 billion (US$154 million) from an initial public offering in Hong Kong to finance expansion of its business, according to a regulatory filing yesterday.

The company, which runs five vertical portals specializing in IT information, automobiles and women's issues, is offering 285 million shares at HK$2.98 to HK$3.58 apiece, it told the Hong Kong Stock Exchange.

An additional 42,750,000 shares could be offered, given a strong subscription that began yesterday, which may help the company raise a total of HK$1.2 billion based on the top range of its proposed pricing.

The pricing will be finalized on December 17 and shares will debut in Hong Kong the next day.

The company, based in Guangzhou, capital of southern Chian's Guangdong Province, was founded in 1997 and is best known for its IT information portal, PCOnline.com.cn. It had an average annual sales growth of 45 percent in the past three years.

Revenues last year reached 171 million yuan (US$23.1 million), with net profit of 67 million yuan and a gross margin of 73 percent. Its net profit for the first half this year was 39.9 million yuan.

Pacific Online will use about HK$130 million to improve its existent portals, including hiring more editors and upgrading its network facilities.