Tencent’s China Literature passes HK stock exchange IPO pre-approval

Tencent’s China Literature (阅文集团), China’s largest e-book and online publishing company, has completed the listing hearing for the Hong Kong Stock Exchange, according to Hong Kong’s Sing Tao Daily (in Chinese). Analysts say the share price could be announced as soon as next week with the IPO happening this month.

Back in July, the company announced it was hiring Bank of America Merrill Lynch, Credit Suisse, and Morgan Stanley as sponsors of the IPO, according to Reuters, whose IFR publication put the value of the deal at between $600 and $800 million.

According to Sina News, Tencent has previously said holders of Tencent shares will have purchase preference (in Chinese) for shares in the new listing if they purchase Tencent shares before October 17. Through various wholly-owned subsidiaries, Tencent currently controls 65.38% of China Literature and it will remain a Tencent subsidiary after IPO.

China Literature’s platform is the largest and most influential in China, comparable to the Kindle and e-book system run by Amazon, though also deals in physical books.

This could be a particularly lucrative time to proceed with the China Literature IPO as Asian shares approach a ten-year high ahead of the 19th Party Congress in China, according to Reuters. The conglomerate is also planning an IPO for its Tencent Entertainment Group.