By Zhan Lisheng (China Daily)
Updated: 2007-11-03 10:06

Guangdong China Sunshine Media Co Ltd will float 70 million A shares on Monday, aiming to raise 400 million yuan (US$53.62 million) to revamp its printing house and expand distribution.

The media group's original shareholders will take 50 million shares, with 20 million for retail investors, according to a bulletin released by the Shenzhen Stock Exchange.

The price has been set at 7.49 yuan per share for retail investors.

Funds raised are expected to make up 25.99 percent of the company's gross capital stock.

The firm will be the first on the third board of the Shenzhen Stock Exchange to be approved to float on the A-share market. It will also be the first media group on the SME board of the Shenzhen exchange.

The third board market refers to over-the-counter trading of smaller company stocks, mainly in the technology, media and telecom sectors.

The initial public offering (IPO) will allow Guangzhou Daily Group to go public on the A-share market via a backdoor listing.

Guangdong China Sunshine Media Co Ltd is controlled by Guangzhou Dayang Culture and Communication Co Ltd, a subsidiary of Guangzhou Daily Group.

Guangzhou Dayang signed a stock-swap deal with Qingyuan Jianbei Group on the third board market of the Shenzhen exchange early in 2000. It took 36.79 percent of Qingyuan Jianbei's stock to become the controlling stakeholder, enabling Guangzhou Daily to float its non-content assets via a backdoor listing, according to Chen Liqiang, secretary of the firm's board.

Qingyuan Jianbei's IPO plan was not approved by the General Administration of Press and Publication until early 2004. It changed its name to Guangdong China Sunshine Media Co Ltd, with a stock name of Yue Media, in May 2005.

Guangdong China Sunshine Media said Yue Media had net assets of 766 million yuan by the end of 2006 and realized business revenue of 341 million yuan, with profit of 84.03 million yuan.