China-based entertainment media company Shanda Interactive Entertainment Ltd (SNDA) announced its plans to file for an initial public offering or IPO of Shanda Games Ltd. The company noted that it would submit the draft registration statement with SEC on a confidential basis and not revealed the number of shares proposed to be offered. Currently Shanda Interactive owns Shanda Games that manages its online games business.
Through the IPO, Shanda Interactive expects to provide a sharper focus and more flexibility for Shanda Games to chase strategic opportunities that would help ascent in online games sector.
Shanda Interactive said it would concentrate more in development as an interactive entertainment media firm. Even after the proposed IPO Shanda Interactive would remain the major shareholder of the gaming company.
SNDA finished Friday's regular trading session at $54.93, up $2.43 or 4.63% on a volume of 758 million shares.
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