Phoenix New Media of China Seeks $178.7 Million in U.S. IPO

Phoenix New Media Ltd., the Beijing-based Internet, TV and mobile-news provider, seeks to raise as much as $178.7 million in a U.S. initial share sale, one of 7 China-based companies announcing IPO plans this month.

Phoenix will attempt to sell about 12.8 million American depositary receipts for $12 to $14 apiece, according to a filing with the U.S. Securities and Exchange Commission today. Another company, Beijing-based online-dating company Jiayuan.com International Ltd., is seeking to raise $85.2 million selling 7.1 million ADRs at $10 to $12 each, according to a prospectus.

The companies aim to complete their offerings after Beijing-based Qihoo 360 Technology Co., the provider of Web browsers, more than doubled following a March 29 offering. Phoenix New Media and Jiayuan are among at least 31 companies that have announced plans for U.S. IPOs in April, making this the busiest month for new filings since August 2007, according to Renaissance Capital LLC, the Greenwich, Connecticut-based IPO investment firm.

IPOs typically price within about two weeks after the marketing terms are announced. Renren Inc., owner of China’s largest social-networking website, plans to sell 53.1 million ADRs for $9 to $11 each in an IPO next week, according to its SEC filing and data compiled by Bloomberg.

China Zenix Auto International Ltd., the country’s biggest maker of wheels for commercial vehicles, will attempt to raise as much as $148.4 million selling 12.9 million ADRs for $9.50 to $11.50 each, according to an SEC filing today. The Zhangzhou, China-based company will use proceeds to build a new factory in India and expand its distribution network in China. The offering is being led by Morgan Stanley. (MS)

Acquisitions, Development

Revenue at Phoenix New Media more than doubled to 528.7 million yuan ($81.2 million) in 2010 compared with 2008, while adjusted net income surged to 90.6 million yuan from 1.8 million, the prospectus showed. Proceeds will be used for content acquisition, product development and marketing.

Phoenix New Media is controlled by Phoenix Satellite Television Holdings Ltd. (2008) of Hong Kong, according to the IPO prospectus. The parent, which is part-owned by China Mobile Communications Corp. and News Corp., will maintain more than 50 percent ownership following the offering, according to a Jan. 18 statement to the Hong Kong Stock Exchange.

Other owners include Hong Kong-based Morningside Group, the venture capital arm of Santa Clara, California-based Intel Corp. (INTC), and Bertelsmann AG, Europe’s largest media company, according to the statement.

The Phoenix New Media offering of ADRs is being led by Morgan Stanley, Deutsche Bank AG (DBK) and Macquarie Group Ltd. (MQG)

Jiayuan’s biggest investor is Chairman Yongqiang Qian, with a 31 percent stake, according to the prospectus. He plans to sell 600,000 ordinary shares in the offering, trimming his stake to 23.1 percent. Two ADRs represent three ordinary shares.

The company will use proceeds to pay dividends, establish new offices, expand capacity and fund possible future strategic acquisitions, the company said in its filing. Bank of America Corp. (BAC) and Citigroup Inc. (C) are leading the IPO.

To contact the reporter on this story: Lee Spears in New York at lspears3@bloomberg.net

To contact the editor responsible for this story: Jennifer Sondag at jsondag@bloomberg.net

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