Kingsoft Corp said it has attracted US$72 million in investment from three
foreign funds, which will help speed the process for the Beijing-based software
and online game firm's long-expected overseas initial public offering.
The investors are The Government of Singapore Investment Corp, which manages
US$100 billion; Intel Capital; and New Horizon Fund, a China-market oriented
fund established by Temasek Holding Private Ltd and SBI Holding Inc.
Kingsoft, in which Lenovo Group holds a major stake, declined to reveal the
new share structure.
"We will use the capital injection for online games, and we plan to become
No. 1 in this sector within three years," Lei Jun, Kingsoft chief executive,
said in a statement.
To gain the top spot, the company needs to surpass NetEase.com and Shanda
Entertainment.
Kingsoft plans to cooperate with foreign game designers and set up several
new game research centers, each employing 200 to 300 people.
At present, Kingsoft has centers in Zhuhai, Beijing, Chengdu and Dalian. It
has developed popular games based on Chinese history and traditional culture.
The new capital will help Kingsoft grab a larger slice of China's rapidly
growing online game market, according to Chen Wen, an analyst at Beijing-based
CCID Consulting, a research firm under the Ministry of Information Industry.
In 2005, game industry revenue was 6.1 billion yuan (US$762 million), jumping
51 percent year-on-year. In 2010, revenue will hit 14.3 billion yuan, according
to iResearch Inc.
Kingsoft, which also sells word-processing software and antivirus programs,
said earlier that it plans to raise 2 billion yuan through an overseas
IPO.
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