Shanda Entertainment, a media conglomerate based in mainland China, announced earlier this week that they are moving forward with the IPO of Cloudary, its eBook subsidiary.
Shanda has not filed the SEC paperwork yet, but sources are reporting that this IPO is in the works.The IPO will take place in the US, where Cloudary is relatively unknown, because Shanda is hoping to raise 200 million from American investors.This is actually Shanda’s second attempt to spinoff Cloudary. The first was last year, and it fell through when an underwriter pulled out.
That was probably a good thing for Shanda. In the 6 months since the last IPO attempt. Cloudary has achieved a 70% eBook market share in China. Revenue nearly doubled (to 701 million yuan) while the operating loss shrank (to 27.1 million yuan).
Cloudary also got a fair amount of attention at CES 2012, where they showed off their new Bambook Sunflower, an eReader equipped with a Mirasol screen.