Image credit: @dragonpreneur.
Xinhua Network Co, the internet wing of the Xinhua News Agency, has applied to the China Securities Regulatory Commission for permission to launch an initial public offering (IPO) ahead of a listing on the Shanghai Stock Exchange, according to the Wall Street Journal.
The commission has been reviewing Xinhua Network Co.’s IPO plan, it said in a statement posted on its website Friday.
China International Capital Corp. is the sponsor of the IPO, the statement showed.
The statement didn’t say how much the company planned to raise nor when it expected to list.
Xinhua’s listing plan comes after a strong trading debut for People.cn Co., 603000.SH +2.61% the website of the Chinese Communist Party’s flagship newspaper, the People’s Daily, in April.
Shares of People.cn rose 74% on its first trading day from the IPO price of 20 yuan ($3.17). The company raised 1.4 billion yuan ($222 million) in its IPO, nearly three times the amount initially planned.
Xinhua hasn’t had a great time of late, the news agency was embarrassed when netizens uncovered that it had doctored photos of vice premier Li Keqiang, and there was online uproar at the revelation that Xinhua (and numerous other Chinese media outlets) were active on Twitter. Author Doug Young also recently accused Xinhua reporters based overseas of acting as spies for the Communist Party.