Shanda Interactive Entertainment seeks an initial public offering of Shanda Games which is currently wholly owned by the company.
The company plans to submit a draft registration statement to the US Securities and Exchange Commission for a possible initial public offering of its online-games subsidiary.
The Proposed IPO is aimed at developing the company as an entertainment media company and allows its online games unit to explore further opportunities in enhancing its position in the online games sector, the company stated.
Shanda expects to remain a majority shareholder of Shanda Games after the proposed stock sale. The details on the size of shares planned to be offered and sold and the dollar amount proposed to be raised have not yet been determined.
China passed the US last year as the world’s biggest Internet market and had 316m web users at the end of March according to Xinhua News Agency.
