Shifang Holding, a print and digital media services provider to advertisers, plans to raise up to HK$840 million through an H-share initial public offering. At an investors' presentation yesterday, Shifang said it planned to issue 183 million shares at an offer price of between HK$3.03 and HK$4.61 each. Shifang provides services to advertisers through a network of newspaper partners, which span 16 second-tier and third-tier cities in eight provinces on the mainland. Its prospectus says 30 per cent of the proceeds will be spent on establishing long-term co-operation with new paper partners in second-tier cities around Bohai Bay, Beibu Bay, and in the northeast. A similar share will be used to expand into new fields, setting up complementary partnerships with other media providers like TV and radio stations, mobile phone services and the internet. Pre-IPO investors include New World Strategic Investment, an investment arm of property developer New World Development; Franklin Templeton Investment Funds; Sinochem Europe Capital, a subsidiary of the Sinochem Group; and CCB International Asset Management. Shifang had a net profit of 141 million yuan (HK$164.5 million) last year, representing a rise of 76.7 per cent year-on-year. In the first six months of this year it made a net profit of 72 million yuan, up 14 per cent compared with the same period last year. The company said it expected net profit for 2010 would be no less than 160 million yuan. The offering will begin on Monday. Shares are expected to list in Hong Kong on December 3.