Kingsoft Corp, the poster-child company of the Chinese software industry, is going to sell its share for the first time in overseas markets this year to raise about 2 billion yuan (US$240.96 million), said a source close to the company Wednesday.

The Beijing-based company would strengthen its online game division after its stock debut, aiming to compete with its domestic rivals such as Shanghai Shanda Internet Development Co Ltd, which is also expected to issue its IPO on Nasdaq this year.

"Kingsoft is tailoring its structure to fit IPO requirements," the source said, confirming it is expected to be listed on Nasdaq in the second half of this year.

If successful, Kingsoft will become the first Chinese company listed on the New York-based Nasdaq market in government-supported software industries.

Kingsoft, a leading home-grown online game, office suite and information security software provider, declined to make comments on its IPO project yesterday.

But Qiu Bojun, the Kingsoft's chairman, announced last week in Chengdu City that the company was preparing for the overseas IPO and it will strengthen its digital entertainment business.

"It's a wise choice for Kingsoft," said Xiao Jian, analyst at CCID Consulting Co.

The Chinese online game market reached 1.78 billion yuan last year with an annual growth of 50 percent in the following five years, according to CCID.
 
(Eastday.com March 25, 2004)