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Finance Business IPO Review Money economy trading

Finance Business IPO Review Money economy trading

Finance Business IPO Review Money economy trading

Finance Business IPO Review Money economy trading

Finance Business IPO Review Money economy trading

Finance Business IPO Review Money economy trading

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Google moneycurry.comWeb

Business :- Online Games

Listing :- Nasdaq Global Market

Symbol:- "PWRD"

Business Overview

IPO Report

Offer/Objects of issue

The Offering

The offer :-  11,800,000 ADSs. (each ADS represents five Class B ordinary shares, par value US$0.0001 per share.)

Common stock outstanding after this offering :-  279,285,720 shares par value US$0.0001per share, includes 91,309,730 Class A ordinary shares and 187,975,990 Class B ordinary shares.

Offer price range :- $12.00 and $14.00 per ADS

Offer Details

ADSs offered by company

9,000,000 ADSs.

ADSs offered by the selling shareholders

2,800,000 ADSs.

ADSs to be outstanding immediately after this offering

11,800,000 ADSs.

Ordinary shares to be outstanding immediately after this offering

279,285,720 shares*

The underwriters have an option to purchase up to 1,770,000 additional ADSs from certain existing shareholders to cover over-allotments.

*Includes 91,309,730 Class A ordinary shares and 187,975,990 Class B ordinary shares.

Holders of Class A ordinary shares and Class B ordinary shares have the same rights except for voting and conversion rights. Each Class A ordinary share is entitled to 10 votes on all matters subject to shareholders’ vote, and each Class B ordinary share is entitled to one vote on all matters subject to shareholders’ vote. Each Class A ordinary share is convertible into one Class B ordinary share at any time by the holder thereof. Class B ordinary shares are not convertible into Class A ordinary shares under any circumstances.

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Proceeds

Estimate net proceeds to company from this offering will be approximately US$106.2 million, after deducting estimated underwriting discounts and commissions and estimated offering expenses payable by company. A $1.00 increase (decrease) in the assumed initial public offering price of US$13.00 per ADS would increase (decrease) the net proceeds from this offering by approximately US$8.4 million, assuming that the number of ADSs offered by company remains the same.

 

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Use of proceeds

  • Primary purposes of this offering is to create a public market for company's shares for the benefit of all shareholders

  • To retain talented employees by providing them with equity incentives

  • To obtain additional capital.

  • Company intend to use approximately US$12 million of the net proceeds from this offering to expand its research and development efforts

  • For other general corporate purposes, including capital expenditures and funding possible future acquisitions.

If an unforeseen event occurs or business conditions change, Company may use the proceeds of this offering differently than as described. Pending use of the net proceeds, company intend to hold its net proceeds in short-term bank deposits or invest them in interest-bearing government securities.

Company will not receive any of the proceeds from the sale of shares by the selling shareholders.

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The number of ordinary shares to be outstanding after this offering excludes:

  • 6,986,620 Class B ordinary shares issuable upon the exercise of options outstanding as of July 11, 2007, at a weighted average exercise price of US$0.26 per share.

  • 15,158,380 Class B ordinary shares reserved for future issuances under company's share incentive plan.

This article reflects personal view of the author about the company and one must read offer prospectus and consult its financial adviser before making any investment decision

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