Clear Media, the largest outdoor advertising agency in China, hopes to raise US$100 million through an initial public offering on the Hong Kong exchange's main board.
The company - a joint venture between mainland company White Horse Advertising and Clear Channel Outdoor of the United States - intends to issue 146 million new shares, about 28 per cent of its enlarged share capital.
Goldman Sachs is sponsoring the deal and Bank of China International, ING Barings and ICEA are underwriting it. Sources expect trading in the shares to begin on December 19. Company representatives will begin meeting fund managers tomorrow to promote the IPO.
Clear Media is the largest bus-shelter advertising company in China, with a portfolio of more than 4,800 sites and more than 12,000 display panels.
Last year the company posted a HK$42 million net profit and HK$110 million in earnings before interest, tax, depreciation and amortisation (ebitda) on turnover of HK$260 million.
Fund managers said Clear Media's offering was aggressive in its valuation.
