13 IT firms seen to list in 2011

Thirteen Shanghai-based software and IT service firms, which have applied to issue IPOs on the domestic market, are expected to be listed this year, the city's industry regulator said yesterday.

Other local firms are seeking opportunities for overseas initial public offerings, such as Tudou.com's listing on Nasdaq which may conclude within six months, according to the Shanghai Municipal Commission of Economy and Information Technology.

"Our policy is to encourage mergers and acquisitions and IPO in the capital market to create several IT giants in Shanghai. They will then be internationally competitive," said Zhu Zongyao, a senior official at the commission who is responsible for software and IT service industry development. The commission didn't provide the names of the firms.

In 2010, six companies, including Wonders Information Co, Eastmoney.com and Dazhihui, went public in the domestic market and raised a total of 6.6 billion yuan (US$1 billion).

Most of the to-be-listed firms have been certified by the central or Shanghai city governments and these firms enjoy a favorable income tax rate of 10 percent instead of the normal 25 percent, Zhu said.

The State Council's latest announcement to grant favorable policies in the integrated circuit and software sectors will also boost the local firms, industry insiders said.

"It will start another 10 golden years for the IT firms (thanks to the policy)," said Yang Genxing, secretary-general of the Shanghai Software Industry Association.

Shanghai-based Tudou.com has recently raised US$50 million in venture capital and plans to list on Nasdaq within six months, following arch rival Youku's United States listing at the end of last year.