China Mobile Games and Entertainment Group (CMGE), the country's largest mobile game company by revenue, will be listed on the NASDAQ Tuesday without an IPO, the company said Wednesday.
Zhang Lijun, chairman of the board at CMGE's parent company VODone Limited, told reporters that the listing of CMGE does not involve any fundraising plans. He noted the current US capital market is not in favor of Chinese companies' IPOs.
The Hong Kong-listed VODone will spin off some shares in CMGE to investors, and those shares will float on the NASDAQ.
Zhang said the stocks are being listed in this way to dispel suspicion about CMGE's financial health among short sellers, who may have interpreted the listing as an attempt at raising money.
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