BIZCHINA / Overseas Investment
Foreigners make e-game bet
(Shanghai Daily)
Updated: 2006-08-22 14:56
Kingsoft Corp said it has attracted US$72 million in investment from
three foreign funds, which will help speed the process for the
Beijing-based software and online game firm's long-expected overseas
initial public offering.
The investors are The Government of Singapore Investment Corp, which
manages US$100 billion; Intel Capital; and New Horizon Fund, a
China-market oriented fund established by Temasek Holding Private Ltd and
SBI Holding Inc.
Kingsoft, in which Lenovo Group holds a major stake, declined to reveal
the new share structure.
"We will use the capital injection for online games, and we plan to
become No. 1 in this sector within three years," Lei Jun, Kingsoft chief
executive, said in a statement.
To gain the top spot, the company needs to surpass NetEase.com and Shanda
Entertainment.
Kingsoft plans to cooperate with foreign game designers and set up
several new game research centers, each employing 200 to 300 people.
At present, Kingsoft has centers in Zhuhai, Beijing, Chengdu and Dalian.
It has developed popular games based on Chinese history and traditional
culture.
The new capital will help Kingsoft grab a larger slice of China's rapidly
growing online game market, according to Chen Wen, an analyst at
Beijing-based CCID Consulting, a research firm under the Ministry of
Information Industry.
In 2005, game industry revenue was 6.1 billion yuan (US$762 million),
jumping 51 percent year-on-year. In 2010, revenue will hit 14.3 billion
yuan, according to iResearch Inc.
Kingsoft, which also sells word-processing software and antivirus
programs, said earlier that it plans to raise 2 billion yuan through an
overseas IPO.
(For more biz stories, please visit Industry Updates)
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