Giant Interactive Group Inc., one of China’s leading online game developers and operators, plans to delist from the New York Stock Exchange and could debut in Hong Kong next year, Ming Pao Daily reported Monday.
The company is restructuring and might inject more assets, like mobile games, into the vehicle for a Hong Kong float, the report said.
Giant Interactive chairman Shi Yuzhu has reached preliminary deals with several fund shareholders on restructuring and relisting in Hong Kong, it said.
Shanda Games Ltd. and Focus Media have reverted to private operations as US-listed Chinese companies have come under attack from short sellers.
A fund analyst was quoted as saying that Giant Interactive is expected to get a higher valuation in Hong Kong, with a price-to-earnings ratio of 12-18 times, up from eight times P/E now. But, the projection is based on strong revenues.
With more game players switching to mobile devices, Giant’s first-half revenue was US$92.5 million, an increase of less than 1 percent, and average revenue per user fell to 230 yuan (US$37.04) from 238 yuan, the first drop in two years, it said.
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