A Chinese publishing group listed on the Shanghai stock market
on Friday morning, becoming the country's first media company to
issue shares in all its operations, including editorial units.
Liaoning Publishing and Media Company Limited (LPMC) aimed to
raise more than 600 million yuan (US$81.6 million) by selling 140
million A shares. This accounted for 25.41 percent of its enlarged
capitalization, Chairman Ren Huiying said.
The company's shares opened at 16.63 yuan, 258 percent higher
than its initial public offering price of 4.64 yuan.
The listing "is an important achievement in the cultural
systematic reform. It marks new success while deepening reform in
the publishing and distribution industry", said Ouyang Jian, deputy
director of the Publicity Department of the Central Committee of
the Communist Party of China (CPC), in a congratulatory letter.
Ouyang hoped that the LPMC would provide further references and
gain experience for the reform of China's publishing and
distribution system.
The department, General Administration of Press and Publication
and the Liaoning provincial government have all approved the
commercialization of the LPMC.
Observers said the listing displayed China was deepening the
commercialization of its publishing and media industry and the
sector could be bright in next year's stock market.
Other media publishing companies, such as Chengdu B-Ray Media
and Beijing Media, had listed before LPMC but excluded their
editorial units, according to Song Jianwu, director of the
Institute of Communication and Media Management Research of China
Renmin University.
The LPMC listing as a whole package was a landmark and
breakthrough for the entire industry and signaled a major policy
change in the country, Song said. "People are expecting further
steps in the commercialization process."
"Its listing is more than just stock market news," added Lin
Muxi, a professor with the Liaoning University School of Economics.
"It is very important politically."
The LPMC, based in Shenyang, capital of the northeastern
Liaoning Province, is engaged in publishing, distribution, printing
and printing materials. It had 1.13 billion yuan in net assets and
90.5 million yuan in net profit by the end of last year.
It currently includes five publishing houses, five book
distribution subsidiaries, one bill and ticket printing company and
one printing materials company.
It planned to merge another four publishing houses in Liaoning
Province when conditions were ripe, Ren said.
It was co-founded by Liaoning Publishing Group and the
Advertising and Communication Center of Liaoning TV on August 29,
2006.
Ren said the LPMC had been given the privilege by the China
Securities Regulatory Commission to get a fast-track listing. The
current regulations stipulated that a company must exist for at
least three years before being listed.
(Xinhua News Agency December 21, 2007)
