HONG KONG – Chinese online video group LeTV.com says it is to raise some $431 million for expansion.
The company revealed that CITIC Securities, China’s leading investment bank and part of state-owned CITIC Group, has subscribed for new shares worth RMB500 million ($81.0 million).
The two companies say that the investment is part of a wider co-venture in Internet investment and innovative financial products.
The company is one of China’s top three online video platforms and is the parent of producer and distributor LeVision Pictures, distributor of the recent hits “Tiny Times,” and the upcoming John Woo-directed “The Crossing”.
The CITIC investment is part of a wider plan for LeTV.com to raise RMB4.5 billion. Subscribers to the share placements are expected to include LeTV’s parent company, Leshi Internet Informaton & Technology, Beijing Lancapital Funds Management, Ningbo Jiuyuan Fund and Beijing Jintai Zhonghe Investment. Some 129 million new shares will be issued at RMB39.29 each, expanding the company’s equity base by 15%.
Following the share issues, LeTV.com will have a market capitalization of RMB38.1 billion ($6.17 billion).