- This IPO is valued around $ 500 million.
- The operation should take place by the end of 2017.
- China Literature offers 8.4 million books online, written by more than 5 million writers.
Tencent has strong ambitions for China Literature, its digital books platform. The Chinese giant, which publishes in particular the mobile messaging WeChat, in fact filed at the end of June, with the Hong Kong Stock Exchange, a request for quotation for China Literature. According to sources familiar with the matter, this IPO is valued at around $ 500 million. The operation should take place by the end of 2017.
For now, Tencent owns 62% of the capital of China Literature. On the occasion of the platform’s IPO, the Chinese group plans to sell part of its equity, but will seek to retain a majority stake of at least 50% in China Literature.
A literary profit of 3.94 million euros in 2016
Often compared to the Kindle Store of the American juggernaut Amazon, China Literature offers 8.4 million books online, written by more than 5 million writers. The service claims 175.3 million monthly users, of which more than 90% are on mobile.
Tencent achieved revenue of $ 377 million in 2016, up 59% year-on-year. At the same time, the Chinese giant has raked in $ 5.6 million after conceding a loss of $ 52 million a year earlier. Tencent relies on its literary branch to boost its income. And for good reason, it was profitable for the first time in 2016, with a net profit of 3.94 million euros.