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Shanda Looks To Raise $259.8 Million From US IPO

Shanda Interactive Entertainment Ltd, China's operator of online games, is reported to be expecting to raise up to US$259.8 million from a Nasdaq listing, with the offer price for its American Depositary Shares anticipated to be between US$13 and US$15 each.

The company, which made the announcement in a filing to the U.S. Securities and Futures Commission dated Monday, will be selling 17.32 million ADSs–about 34.64 million ordinary shares (24.7% of enlarged share capital.)

Shanghai-based Shanda generates the majority of its revenue from fees paid by users to play its online games. It had net income of 272.9 million yuan (US$33 million) last year, almost double what it earned in 2002. The company estimates its Q1 net income at 71.9 million yuan, a 5.3% increase from the preceding quarter.

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