Beijing Lingtu Software Co, a digital map-making firm, plans to raise up to US$150 million in an initial public offering on Nasdaq or in Hong Kong by 2008, market sources said.
The company is one of the fastest growing location-based service providers in China. It makes maps for the internet, cell phones and car navigation systems, among other things, for the domestic market.
'Preparation work is already under way,' said a company source who declined to be identified.
'Financial issues like the switch to international accounting standards from domestic standards will be addressed early next year,' said the source, who refused to say how much money Lingtu hopes to raise with the IPO.
Another source said the IPO is most likely to take place in 2008, though it could be moved up to next year: 'The company has just started talking to banks, exploring ideas.'
Lingtu is funded by several venture capital firms led by Shanghai-based Gobi Partners.
'In terms of digital mapping for cell phones and internet users, Lingtu's business model is still not very clear,' said Xu Chen, vice-president of Gobi Partners. 'But personal navigation systems in China have already become a mature market and key players are leading the industry.' Two Lingtu foreign rivals are publicly traded.