Shanda Interactive Entertainment Limited, China's biggest online games operator, raised $152.4 million in an initial public offering, after cutting its minimum price by 15% from a range of US$13-15 to US$11.

The Shanghai-based company sold 13,854,487 American depositary at the revised price, which Michael Yin, a senior Internet analyst with Shanghai iResearch Ltd, believed was mainly due to US investors' panic over the overheating of some parts of the Chinese economy. The decline in wireless revenues for companies like Inc and Inc increased investors' worries about these companies' prospects.

The sale of Shanda's shares was carried out in the midst of two lawsuits about alleged licensing and patent infringements, and despite investor concerns about an increase in interest rates. Korean software developer Wemade Entertainment Co. filed an injunction against Shanda in September to prevent the company selling China's top-selling Internet game–Legend of Mir II–and separately filed claims in Beijing alleging Shanda violated its copyright.

"The online game industry has certain attractions to Internet users which are growing in China," said Preston Ko, in an interview with Bloomberg. Ko helps manage $120 million at BCOM Finance (Hong Kong) Ltd., a unit of Bank of Communications, and didn't buy the shares. "It needs to drive sales volume to maintain profitability."


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