The portal was expected to raise about 1 billion yuan ($160 million), Reuters reported Monday, citing an unnamed source. One investor was China Culture Industrial Investment Fund, the fund said on its oficial website, which did not disclose the amount of investment.
The country's leaders pledged at the beginning of 2012 to support the media industry. People's Daily, the organ of the Communist Party of China, launched its IPO on April 27, 2012, becoming the first State-backed news website with a public listing.
People.com.cn's IPO attracted overwhelming interest from investors, more than doubling its IPO target of 527 million yuan to raise 1.38 billion yuan.
The market value of people.com.cn was 10.28 billion yuan Friday, according to Wind Information Co, a Shanghai-based financial data provider.
"It will be hard for xinhuanet.com to recapture the success of people.com.cn's IPO, which catered to the sentiment of investors who were motivated by newly issued government support policies. People.com.cn was also the first State-backed media website to get listed," Li Weidong, research director of Beijing-based investment consulting company ChinaVenture, told the Global Times Monday.
"For xinhuanet.com to attract potential investors, it could leverage its media resources to launch some offline services to generate revenue, such as research centers that could study national conditions in China," Chen noted.
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