China Literature IPO will be listed in Hong Kong at a market value of HK $55 and a market capitalization of nearly HK $50 billion.

China Literature IPO finally sold at HK $55.00 per share, giving China Literature a market capitalization of nearly HK $50 billion. China Literature will be listed for trading on November 8th.

China Literature IPO is finally sold at a fixed price, with a market value of nearly HK $50 billion.

according to an announcement issued by China Literature Group of Tencent spin-off today, the final selling price of China Literature under the global offering is HK $55.00 per share (excluding 1.0% brokerage commission, 0.0027% CSRC transaction levy and 0.005% SEHK trading fee). If the global offering were conducted at the final offering price of HK $55.00 per China Literature share, China Literature's market capitalization would be about HK $49.853 billion immediately after the completion of the global offering.

China Literature's IPO ended on October 31st. Last week, media reports quoted people familiar with the matter as saying that China Literature was priced at HK $55, the upper limit of the range, and that China Literature's goal of raising US $1.1 billion in Hong Kong IPO had been met.

China Literature will be listed on the main board of the Stock Exchange of Hong Kong on November 8th.

since the IPO began on October 26th, China Literature has attracted a lot of attention. As for institutional investors, according to statistics from 14 brokerages in the Hong Kong Economic Daily, as of October 31, China Literature's subscription capital temporarily recorded nearly 152.7 billion yuan, equivalent to 182 times the oversubscription of the public offering.

not only is it very popular among institutional investors, but also China Literature shares are popular among retail investors, subscribing for more than 100 times at one time.

behind China Literature's popular subscription, the phenomenon that has been particularly noteworthy is that Hong Kong's capital has remained tight since China Literature began to accept retail subscriptions.

on the 26th, Hong Kong one-month Hong Kong dollar interbank offered rate (Hibor) climbed 4 basis points to 0.69286%, the highest level in nine months. Then Hibor continued to rise, rising to a nine-year high on the 31st.

also on the 26th, Futu Securities, as a co-sponsor, told users that leveraged purchase was suspended because China Literature Group's financing subscription scene was too hot.

China Literature Group was formed by the integration of Tencent Literature and the original Shanda Literature in March 2015. it includes QQ Book, Qiqi Chinese website and other brands.

Public data show that as of the end of June, there were 9.6 million works and 6.4 million writers on China Literature's platform. In the first half of this year, China Literature made a profit of 213.5 million yuan, but in the same period last year, China Literature lost 2.4 million yuan.

data show that 30 per cent of the funds raised by China Literature Group will be used to expand online reading business, 30 per cent will be used to pay for potential investments, acquisitions and strategic alliances, and 30 per cent will be used to adapt online literary works into derivative entertainment products. invest in TV dramas and online dramas, while the remaining 10% will be used for working capital and general corporate purposes.

upon completion of the global offering, Tencent and its wholly-owned subsidiaries will indirectly control 52.66% of China Literature Group.

Edit: xiongwei