Chinese online game operator raises a large investment prior to finalizing its initial public offering plans.
ChinaDaily reports that online game developer ZTgame has raised $100 million from venture capitalists. Investors will likely be cashing out for decent returns when the company goes public.
"Several venture capitalists and individual investors bought into this company through private placements in August. ZTgame has filed its listing application to US securities regulatory authorities and could hold the share offering by the year's end," said Bao Fan, Chief Executive Officer of investment bank China Renaissance, who advised ZTgame during the fundraising process.
Zheng Tu, ZTgame's first game, was released last April and launched the company to third place in China's online-gaming provider behind Shanda and NetEase. The company earned 779 million yuan ($103.6 million) during the first half of 2007 and reached a 14.9 percent market share of the local online gaming scene, according to Analysys International, a Beijing-based IT consultancy. Currently, all of ZTgame's revenue is from [i]Zheng Tu</I., which hosted 1 million daily players at its peak.
Analysys International analyst Liu Xin said, "ZTgame needs the money to stay on a fast track. It may acquire game development teams or obtain game authorization from overseas gaming companies, as its competitors did."