Forgame, a leading web game developer and publisher in China, launched roadshow on Sept. 16 to prepare for the debut on Hong Kong stock market on Oct. 3.
The company planned to raise between HK$1.36 billion ($175.39 million) and HK$1.73 billion in IPO at an issuing price between HK$43.5 and HK$55 per share (report in Chinese). Industry insiders predicted that the capital raised this time will be invested in expanding mobile gaming business.
Forgame has secured millions of dollars in Series A financing from TA Associates, Qiming Venture Partners and Ignition Capital Partners in 2012.
Feiyin Games and Jieyou Games, two game development subsidiaries of the company, released more than 20 online games. 91Wan, the company’s game distribution platform, released 59 self-developed or licensed games, recording more than 179 million registered users as of June this year. The games developed by the company include, Ming Dynasty and Fengyuntianxia (OL). The latter reportedly recorded more than 10 million yuan of revenue as of May this year.
The company generated 240 million yuan of net profit and 777 million yuan of revenue in 2012, mainly comes from sales of virtual items, according to prospectus released by the company. Forgame was the No.1 web game developer in China, accounting for 24% of the net profit of China’s web game development industry in 2012, according to iResearch, an independent research institution.(source in Chinese).
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