Shanda files to list e-book unit

Shanda Entertainment hopes to resurrect a postponed initial public offering of its online literature arm in the United States, which may raise US$200 million.

The company filed the application to restart the IPO process for its unit, Cloudary Corporation, with the US Securities and Exchange Commission at the weekend.

Shanda will use the proceeds raised from the IPO to expand Cloudary's marketing activities and seek opportunities for investment or acquisition. The IPO funds will also help Shanda to meet challenges from Hanwang, Dangdang.com and 360Buy.com.

Shanda had planned for Cloudary's IPO in May last year but it shelved the plan due to an uncertain economic environment and on concerns over Chinese dot-com firms.

With 5.8 million works of literature, 770 online magazines and many well-known contracted authors, Cloudary has attracted millions of readers, especially students. Shanda has also generated huge income from its cooperation with China Mobile, the country's biggest mobile carrier, to encourage reading on cell phones.

In 2011, Cloudary, formerly called Shanda Literature Corporation, made a loss of 35.9 million yuan.