Hong Kong, March 9, 2000
Market Capitalisation of hongkong.com is US$3.5 billion as at the close of first day trading
— hongkong.com Corporation (www.hongkong.com; stock code: 8006), a subsidiary of chinadotcom corporation (NASDAQ: CHINA; www.corp.china.com), commenced trading of its shares on the Growth Enterprise Market ("GEM") of The Stock Exchange of Hong Kong Limited today.
On its first trading day on GEM, 367.5 million shares of hongkong.com changed hands. The shares reached a high of HK$9.10 (US$1.17) and closed at HK$6.75 (US$0.87), the latter representing an increase of approximately 260% as compared with the placing price of HK$1.88 (US$0.24). At the close of the trading day, the market capitalization of hongkong.com Corporation stood at US$3.5 billion.
hongkong.com offered 640,000,000 placing shares (before the exercise of the over-allotment option), of which 544,000,000 shares available for subscription by professional and institutional investors recorded a significant over-subscription rate. With a re-allocation of 22,198,000 shares, the total number of shares available to professional and institutional investors was increased from 544,000,000 shares to 566,198,000 shares.
The net proceeds of the placing to hongkong.com after deduction of the relevant expenses are estimated to be approximately HK$1,143 million (US$146.9 million).
Commenting on the performance of the shares, Chief Executive Officer of hongkong.com Corporation, Mr. Rudy Chan said, "We are extremely encouraged by the over-subscription rate and the closing share price today as they truly reflect investors' interests and confidence in hongkong.com. We have a proven history in operating hongkong.com and with one million registered users, we are one of the leading portals in Hong Kong. The successful GEM market listing today signifies yet another milestone for hongkong.com. Given our unique 3 'C' strategy of
content, community and commerce, I am confident that hongkong.com will continue to be one of the leading portals for the online community."
Chief Executive Officer of chinadotcom corporation, Mr. Peter Yip said, "Leveraging chinadotcom's unique and highly successful investment-driven "Build, Distribute, Sell" business model, hongkong.com is ideally positioned to further capitalize on its status as Hong Kong's leading portal. hongkong.com's debut on the GEM market reinforces chinadotcom's position as the Internet value creator of Asia, with a proven ability to create investment value for its subsidiary businesses. This strong performance of hongkong.com follows chinadotcom's successful debut on NASDAQ in July 1999. chinadotcom's shares are now trading at 14 times their IPO price, demonstrating the company's commitment and ability to deliver tangible value for its shareholders worldwide. "
BNP Prime Peregrine Securities Limited and Lehman Brothers Securities Asia Limited are the Joint Global Coordinators, Joint Bookrunners and together with Tai Fook Securities Company Limited, the Joint Lead Managers of the placing. Lehman Brothers Asia Limited and BNP Prime Peregrine Capital Limited are the Joint Sponsors.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such jurisdiction.
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 Asia-Pacific 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 the existing on-line services, while the third category of investments, partnership, enables chinadotcom corporation to join with established Internet companies to accelerate 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 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.
About hongkong.com Corporation
hongkong.com has established strategic alliances with a number of prominent, internationally recognized businesses including AOL, Netscape, 24/7 Asia, RealNetworks, Visitalk.com, TheBigstore, Xinhua, Agence France-Presse, Reuters and eBay. They offer content, technology and distribution capabilities as well as marketing, e-commerce and cross-promotional opportunities. Main channels available on hongkong.com include technology, finance, beauty, sports, entertainment and the cityguide.
As one of the leading Hong Kong portals, hongkong.com had approximately 35 million hits and 3 million page views daily as at the end of February 2000. With efforts to build online communities, encouraging a wider user base, effective marketing campaigns and 20 vertical channels of localized content, hongkong.com has already acquired one million registered subscribers, a more than 30% increase from 760,000 registered subscribers in the fourth quarter of 1999.
Partnering with world recognized advertisers including IBM, FOX, Microsoft and Compaq, hongkong.com has already generated significant growth in revenue from its online advertising opportunities. As hongkong.com's e-commerce operation continues to develop regionally and globally, it will strengthen hongkong.com's position as one of the preferred advertising sites.
For more information about chinadotcom corporation, please visit www.corp.china.com.
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