Next Chinese IPO on Deck: XFML

IPOhome.com has reported that Xinhua Finance Media has filed for an initial public offering with SEC on February 21, 2007. According to the SEC filing, the company will offer 23 million American depositary shares (ADSs) in the IPO, priced between $12 to $14 per ADS. The business of Xinhua Fiance Media currently “focuses on business and financial news as well as wealth management and affluent lifestyle programming.” Their operations include:

• Media production, which refers to our in-house production studios that create and produce a diverse array of high-quality programs, including business, entertainment, educational and animation shows;
• Broadcasting, which refers to the distribution of our programming through Inner Mongolia Satellite Television; our production and syndication of the Fortune China series of financial programs, including Fortune Morning 7 a.m., a popular financial news program in China; and our production and distribution of bilingual content for China Radio International’s EasyFM stations in Beijing and Shanghai;
• Print, which refers to our exclusive rights to sell advertising for and provide management and information consulting services to, Money Journal magazine and the Economic Observer newspaper;
• Advertising, which refers to our advertising agency that creates and places advertising for television, print media and campus billboards;
• Research, which refers to our market research group that provides research services on products, advertisements and markets.

The company itself may be a little unknown, but if you are an investor of Chinese stocks, then you should be no stranger to their parent company, Xinhua Finance Ltd, the publisher of FTSE/Xinhua China 25 Index, the index behind the popular iShares FTSE/Xinhua China 25 Index fund (FXI).

According to IPOhome.com, Xinhua Finance Media has a market value of $888.2 millions at the end of 2006, revenue $59 millions and net income $3 millions. Shares of Xihuan Finance Media are expected to begin trading on in the week of March 5, 2007 under ticker symbol XFML.

In 2006, five Chinese companies, CSIQ, GRRF, HMIN, EDU, and SOLF, made their debuts on the big board. Their performances so far are shown in the following chart, 3 out of 5 posting substantial gains with HMIN being the biggest winner.

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