People.cn announces price range for IPO

People.cn Company, the online platform of China’s state-controlled People’s Daily newspaper, said it aims to raise RMB1.6 billion (US$246 million) in its upcoming IPO for a Shanghai Stock Exchange listing, almost triple its original forecast, The Wall Street Journal reported. The firm said in a statement released Tuesday that it would set a price range of RMB20.00-22.50 for the firm’s shares, valuing the firm at 46.13-51.89 times last year’s earnings – above the average P/E ratio for other technology firms on the market. The company says it will sell 69.1 million shares, or around 25% of its enlarged capital. Such an offering could net the firm far more than the RMB527 million (US$84 million) it forecasted back in January for the same amount of shares. The firm has not yet said when the IPO is expected to begin trading, but it will continue to take orders through Wednesday.