China-based CDC Corporation has officially announced plans to launch an initial public offering for its enterprise software subsidiary.
CDC Software Corporation, an indirect wholly-owned subsidiary of CDC Corporation that develops and distributes enterprise software, has submitted a registration statement to the U.S. Securities and Exchange Commission for an initial public offering of up to USD80 million aggregate principal amount of Class A Ordinary Shares.
The company states that the purpose of the offering is to allow CDC Software to more clearly differentiate its line of business from CDC Corporation and provide a more targeted investment vehicle for investors seeking to invest only in the enterprise software portion of CDC Corporation's diverse businesses.
In addition, as CDC Software has primarily focused its efforts over the last year on improvement of key operating metrics and the strategic realignment of its operations, the offering is also intended to more-fully capitalize CDC Software, allowing it to expand sales channels, fund research and development activities and pursue its acquisition strategy.
