Duzhe Publishing seeks to be listed in the Shanghai Stock Exchange. (Photo : Reuters)
Duzhe Publishing & Media Co. Ltd. seeks to be listed in the Shanghai Stock Exchange to raise $81 million for the development of its magazine titles, book publishing operations and other digital publishing projects.
Duzhe Publishing is the publisher of China's most famous magazine, the Duzhe (Readers).
China Dragon Securities Co. Ltd. is the lead underwriter for the Lanzhou-based publishing firm. Duzhe will then hold a large 80 percent controlling stake in the company, also based in the Gansu province capital.
Everbright Capital Investment Co. Ltd., Jiuquan Iron and Steel (Group) Co. Ltd. and Gansu Provincial State-owned Asset Investment Group Co. Ltd. are the other major shareholders.
The Duzhe magazine, regarded as the Chinese version of Reader's Digest, is published bimonthly and sells over 200,000 copies. The cover price rose at the start of the year from 4 to 6 yuan.
The firm's gross profit for each edition can tally up to 924,000 yuan, excluding the production cost of 1.38 yuan per copy.
Recently, Duzhe has been venturing into other products involving TV and digital items. It invested in the TV series "The Empress of China" together with Zheijang Talent International Film Co. Ltd, giving it 268 million yuan worth of revenue.
The Chinese firm also had experienced tough time in the recent years. According to its prospectus, Duzhe's sales revenue declined from 191 million yuan to 173 million yuan between 2012 and 2014.
However, analysts have high hopes for the firm on its flotation prospects.
For the first quarter of 2015, of the 68 communications and cultural firms listed in Shenzhen and Shanghai, 44 saw a net profit increase. Eleven companies had their net surplus doubled.
