Phoenix Satellite reduces expectations for IPO

Phoenix Satellite Television has slightly reduced the amount it expects to raise from its initial share offering on Hong Kong's Growth Enterprise Market to between HK$663 million ($85 million) and HK$936 million, from a previous range of HK$800 million to HK$1 billion, amid increased volatility in telecom, technology and media stocks.

The company plans to offer 720 million shares at between HK$0.91 and HK$1.29 a share, says R.J. Rosso, a spokesman for Merrill Lynch, which is co-managing the transaction with Bank of China International.

Phoenix launched a roadshow in Singapore last Friday aimed at drumming up investor interest. The company is also making presentations in Hong Kong, the US and Europe. It will hold a press conference on 20 June to announce details of the listing.

Phoenix was launched in 1996 as a joint venture between Satellite Television Asian Region (Star TV); Bank of China; and Liu Changle, a Chinese businessman. The company posted a loss of HK$78 million in fiscal 1999 compared with a loss of HK$131 million the year earlier, according to the underwriters.

Revenue rose 80% to HK$315 million from the year-earlier period. The company expects to post a profit of HK$4 million in the year ending 31 June 2000. Phoenix plans to launch a new 24-hour news channel by the fourth quarter of this year. The channel will be modelled on Cable News Network (CNN) of the US.