Proceeds of sale to go to more acquisitions
HONG KONG – Chinese TV advertising sales business SinoMedia is to float on the Hong Kong Stock Exchange in an initial public offering worth $42 million.Share sale is a rare chance for international investors to buy a slice of mainland China’s TV advertising market. SinoMedia is the second largest seller of airtime for China Central Television, the state-owned broadcast giant which accounts for 29% of TV audiences. Company represents 55 shows on CCTV and last year sold 10,450 minutes of ads. It also has contracts with regional or local channels including Jiangsu TV City Channel and Shenzhen Satellite TV Channel. It recorded revenues last year of RMB365 million ($52.8 million) and is forecasting net profits of over RMB120 million ($17.4 million) in the current year. Company says it will use the proceeds of the share sale to acquire other airtime sales businesses in China.