THE online arm of the state-run news media, People's Daily, hopes to raise up to 1.55 billion yuan (US$245.5 million) in its initial public offering in Shanghai, almost three times higher than its original estimate.

People's Daily Online has set its share price at between 20 yuan and 22.50 yuan, according to its filing to the Shanghai Stock Exchange yesterday.

Its prospectus released earlier this month indicated that it had intended to raise 527 million yuan by selling 69.1 million shares.

The offering price represents 34.60 to 38.92 times the company's earnings per share, which signals a strong investor demand as the website is the first state-owned company to seek public listing.

The online company will announce the final pricing on Thursday.

The proceeds from selling shares will be used to upgrade technology, improve mobile news platform and strengthen its editorial team.

People's Daily is the controlling shareholder of people.com.cn with a 79.54 percent stake. Other shareholders include China Mobile, China Unicom and China Telecom.

In 2011, People's Daily Online reported a revenue of 497 million yuan, a jump from 332 million yuan a year before.

Established in 2001, People's Daily Online is designed as an official platform for news and announcements from the Party and the central government.

Source:shanghaidaily