Third-party owned media content distributor Medialink Group (2230) starts public offering tomorrow and plans to offer 498M of shares, with 49.8M public offering shares and 448.2M placing shares, at an offer price range between HKD 0.45-0.53. With board lot size of 5000 shares, the entry fee will be HKD 2676.7. Public offering starts tomorrow, ends on 10 May, and expected to be listed on 21 May. Guotai Junan is the solo sponsor of the offering.

Assuming an offer price of HKD 0.49 per share, being the mid-point of the offer price range, the net proceeds will be HKD 205.2 million. 54.8% will be used for obtaining licensing rights of new media content, 17.5% will be used for obtaining new licensing rights of brands, 6.9% will be used for relocation and renovation of Hong Kong office and upgrading information technology equipment, 9.5% will be used for co-investment in the production of media content, 4.7% will be used for hiring staffs and 6.6% will be used for general working capital purposes.

While being asked whether the censorship in China will affect company’s business, the company’s Chief Operating Officer W. K. Cheung explains, the company has a wide variety of animation being distributed, and believes that not all genre will be censored. He continues, there are censorships in many different countries, and the company will have a deep understanding on the market before doing any purchasing. Lovinia Chiu, Chairman of the company added, the company will focus on developing the pre-school market in Mainland China.