This story was written by Rafat Ali.
Yes, some companies are still brave enough to file for IPOs: Changyou.com, the online gaming division of Chinese online and mobile portal giant Sohu (NSDQ: SOHU), has filed to raise up to $120 million in an IPO. It will be traded on the Nasdaq under the symbol CYOU. It will issue 7.5 million American depositary shares at $14-$16 a share, with the underwriters being Credit Suisse and Merrill Lynch.
Sohu reorganized recently and made the gaming division into a separate unit. According to the prospectus filed, Changyou.com has a net income of $108 million, on revenues of $202 million in 2008, up a bg way from net income of $5.3 million on revenues of $42 million in 2007. Sohu will remain the majority shareholder after the IPO.
Changyou.com had developed the popular multiplayer online role-playing game Tian Long Ba Bu and also operates the game Blade Online under licence, and will kick off its investor marketing roadshow in Hong Kong on Thursday and will price the deal on April 1, reports Reuters, citing sources. Of course this is just an initial filing for now. More details in the release here.
By Rafat Ali