China Literature Listed on HKSE, CICC Acts as Joint Global Coordinator, Joint Bookrunner and Joint Lead Manager

On November 8, 2017, China Literature Limited (722.HK) successfully completed its initial public offering and listing on the Hong Kong Stock Exchange, with an offering size of ~HK$8.33/9.57bn (pre-shoe/post-shoe). China Literature Limited enjoys a dominating position in China’s online literature market as well as in the pan-entertainment industry. This milestone deal was highly sought after and warmly welcomed by the market. CICC acted as Joint Global Coordinator, Joint Bookrunner and Joint Lead Manager in this transaction.

China Literature Limited is a leader in the online literature industry. It built a win-win platform of writers, readers and content adaptation partners, which revolutionized the entire online literature industry. China Literature Limited has accumulated a deep pool of writers and vast library of exclusive original contents, reached an extensive reader scale, fostered robust editorial capabilities, and meanwhile streamlined intellectual property adaptation and content operation. It is a well-established innovative pioneer standing at center of the online literature ecosystem. As of June 2017, China Literature Limited had offered 6.4 mm writers, 9.6 mm literary works, and had 191 mm monthly average active users in 1H 2017. It has secured its leading position in China’s online literature market with the largest user base, the most vibrant community of writers and the richest content library.

With deep understanding of China Literature Limited and the online literature industry, CICC assisted the company in fully tapping into its investment highlights. With the help of CICC, China Literature Limited’s debut on the capital market received unprecedentedly remarkable results in the last decade – it was 622x oversubscribed in HK public offering tranche, and triggered the ceiling of the clawback provision. China Literature Limited’s stock price rallied on the first day of trading and closed 86% higher than the offering price.

As the Joint Global Coordinator, Joint Bookrunner and Joint Lead Manager in this transaction, CICC was deeply involved in critical work such as crafting investment highlights, drafting prospectus and introducing investors, and provided full support to the company every step along the way. In the transaction, CICC was highly appreciated and recognized by the client for its rich execution experience and strong service capabilities. As a top investment bank deeply rooted in China with international reach, CICC will continue to leverage its extensive capital market experience and the seamless connectivity between its domestic and overseas businesses to introduce to Chinese enterprises investors around the world and contribute to their efforts in landing on the international capital market and in achieving further business development.