Hong Kong, February 28, 2000
chinadotcom corporation to retain 84% ownership in hongkong.com corporation
— chinadotcom corporation (NASDAQ: CHINA; www.corp.china.com) today announced the proposed listing of its subsidiary company, hongkong.com corporation (stock code: 8006), on the Hong Kong Growth Enterprise Market (GEM). The offering will be for 640 million placing shares representing 16% of hongkong.com corporation. chinadotcom corporation will retain 84% ownership in hongkong.com corporation.
hongkong.com's proposed listing on the GEM is indicative of its support and confidence in the local financial market and the potential of the Internet and e-Commerce market in Hong Kong.
The issue price will be no less than HK$1.60 and not more than HK$1.88 per share. 544,000,000 placing shares, representing 85% of the placing shares, will be available for subscription by professional and institutional investors, while 10% will be placed to Directors and employees of the Group collectively and 5% will be placed to selected registered subscribers of hongkong.com.
Four billion shares will be outstanding after the placing and 4,096,000,000 shares will be outstanding if the over-allotment is exercised in full.
Mr. Peter Yip, Chief Executive Officer of chinadotcom corporation, said, "We are pleased to be making this announcement about chinadotcom's leading portal for Hong Kong. chinadotcom corporation is truly excelling in the execution of it's entire portfolio of Internet capabilities that combine to create the 'Build, Distribute, Sell' investment driven integrated business model. The GEM listing of hongkong.com demonstrates superior performance of our portal network in the 'Distribute' part of our business."
Mr. Yip added, "hongkong.com already has a very strong brand presence in the local market, and the GEM listing will further expand this brand both locally and globally. Hong Kong is well-known to be the shopping paradise of the world and hongkong.com through its rich content, community and commerce experience is uniquely positioned to become one of the world's leading online shopping destinations. Over the past three years, we have built one of the strongest management teams for hongkong.com and the GEM
listing will further strengthen hongkong.com's capabilities to continue attracting and retaining highly qualified staff in the very competitive job market for our industry."
The net proceeds raised by hongkong.com from the placing after deduction of relevant expenses are estimated to be approximately HK$1,062 million (US$136.5 million) (before the exercise of the Over-allotment Option). Proceeds will be used for expansion of network infrastructure, purchase of software applications relating to network infrastructure and e-commerce activities, marketing and advertising in Hong Kong, throughout Asia, and in North America and Europe. In addition, the proceeds will also be used in strategic investments for partnerships and acquisitions in complementary Internet-related companies as well as repayment of loans extended by chinadotcom corporation.
Lehman Brothers and BNP Prime Peregrine are joint global coordinators, joint sponsors and joint bookrunners for the listing.
Mr. Yip concluded, "We are very proud of the work that has gone into creating hongkong.com, including our commitment to develop relevant and interesting content, the foundation for online communities, and an outlet for value-driven online commerce. chinadotcom corporation has built its portal network, including china.com, cww.com, and taiwan.com in addition to hongkong.com, around the '3 C's' principle - a principle that has provided us with demonstrated results on hongkong.com in terms of registered users and e-Commerce activity."
About chinadotcom corporation
chinadotcom corporation (NASDAQ: CHINA) is the leading pan-Asian Internet company built on an integrated operating and investment business model. The company provides a full range of Internet services that; 1) build e-business strategies and solutions (Web Connection), 2) distribute content via its portal network (china.com, cww.com, hongkong.com, and taiwan.com), and 3) sell services through online advertising (24/7 Media Asia).
chinadotcom corporation also invests in synergistic internet companies throughout the Asia-Pacific region that add value and depth to its services and portal channels. chinadotcom corporation's investment strategy is largely based on three types of investments. The first, incubation - through chinadotcom corporation's Jump Start program - supports seeding of new companies and incubates Internet start-ups. For example, chinadotcom corporation's investment in, and development of, looks.com has created a highly popular Asian beauty and fashion on-line
retailer. The second, acceleration, builds on existing businesses and accelerates the growth of existing on-line services, while the third category of investments, partnership, enables chinadotcom corporation to join with established Internet companies to accelerate and expand their entry into the Asian market.
chinadotcom corporation is committed to enabling digital communities to realize their full potential, thereby facilitating the development of the Internet in China and across Asia. The company has over 1000 employees in 24 offices across 10 Asian markets, including Australia, Hong Kong, Japan, Korea, Malaysia, Singapore and Taiwan. In Mainland China, the company has nine offices and over 300 employees. Major corporate shareholders include America Online Inc., Mitsui & Co. Ltd., Nortel Network Corporation, Sun Microsystems Inc., New World Infrastructure Limited and 24/7 Media Inc. For more information about chinadotcom corporation, please visit www.corp.china.com.
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