Douban, essential reading for any serious movie fan in China, is considering an initial public offering of its shares. The company is looking to list on an overseas stock market, according to business news site Caixin.
The company, which claims some 300 million monthly active users, is a portal and social media platform with thematic sections stretching from poetry to portraits. Its movie, books and music operations are its best known, with its film database likely the most comprehensive in Chinese.
The company was started in 2005 and earns the bulk of its revenues from advertising. Latterly it has launched ticketing services and music streaming services. Quoting from an internal memo, Caixin reports Douban CEO Yang Bo as saying that the company will pare back unprofitable activities before the possible flotation.
It also suggests that a listing outside China could be intended to bypass Chinese stock markets’ requirement that companies listing be profitable. The company last raised fresh capital six years ago, with a $50 million funding round led by Trustbridge Partners.