Beijing Youth Daily, one of China's most popular newspapers, is preparing to
list its business operations on the Hong Kong market, possibly before the end of
October, in a deal that could value it at some HK$4bn (US$512m), the Financial
Times reports.
The initial public offering, which will give international investors an
unprecedented opportunity to invest in a Chinese newspaper, is part of a broad
set of reforms aimed at commercializing China's media industry.
People familiar with the IPO plans said Beijing Youth Daily, China's second
biggest newspaper group after the Guangzhou Daily, hoped to list in Hong Kong by
the end of October.
It is understood the publication is looking to sell up to 25 per cent of its
shares in Hong Kong in a deal that could raise up to HK$1bn, the report says.
However, people close to the company said no decision on the size and timing
of the listing had yet been taken.
Beijing Youth Daily had earlier planned to list on a domestic Chinese market
but has been given special permission to issue its shares overseas as part of a
"trial" policy, the FT report says.
The newspaper is one of a number of publications selected to pioneer media
reforms but is understood to be the only one approved for an overseas IPO.
The Beijing-based China's General Administration of Press and Publication
declined to give details of whether there were plans to allow direct foreign
investment in newspaper operations. "The details of the trial news publication
reform is not released to the public," an administration official said.
It is expected that overseas investment is being limited to non-core
operations spun off from parent newspapers or broadcasters.
Beijing Youth Daily is to list its business operations such as advertising
and sales departments, which will fund the separate editorial unit under a
long-term contract.
The paper plans to use the proceeds in part to fund forays into other media
sectors such as broadcasting and business news.
"If this succeeds, it may be that other newspapers will be allowed to
follow," one person familiar with the IPO plans said.
A number of other newspapers are hoping to hold domestic listings to help
them survive in the increasingly competitive domestic media market.
