China’s largest internet company Shanda Interactive Entertainment plans to spin off its online games unit through an initial public offering in the US, Bloomberg reported. Shanda said Monday that it had submitted a draft registration statement to the US Securities and Exchange Commission for the proposed listing of Shanda Games. The company is looking to capitalize on rising demand for online games in China. Morgan Stanley estimates that Shanda’s online game sales may rise 32% year-on-year to US$662 million in 2009 on the back of new releases. The company’s NASDAQ-traded American depository receipts have already gained 70% so far this year. By comparison, NetEase, China’s second-largest online games company, has seen its stock rise 48%. Another rival, Sohu.com, raised US$138 million in April through the listing of Changyou.com, its online games unit.
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