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Cloudary Corporation is an online community-driven literary platform in China including six original literature websites, filed on Tuesday with the SEC to raise up to $200 million in an initial public offering. The Shanghai, China-based company, which was founded in 2004, is the second Shanda Interactive (NASDAQ:SNDA) spinoff following the launch of Shanda Games (NASDAQ:GAME) in September 2009.

Cloudary's online business platform is geared toward tapping into the creative and entrepreneurial aspirations of Chinese writers and readers by facilitating the publishing of literary content and disseminating the content to the greater online community (53% of 2010 revenue). Cloudary generates most of its online revenue from charging user fees for viewing paid content and using community tools (26%), revenue sharing agreements with third-party wireless carriers and e-readers (15%), online advertising (5%) and copyright licensing (5%). Cloudary also manages offline publishing operations (47% of 2010 total revenue) that are designed to complement its online content and has published two of the top three bestselling literature titles in China.

The site averaged over 69 million monthly unique visitors in the first quarter of 2011 and since inception has featured over 1.3 million authors, displaying 5.2 million literary works. Cloudary?s growing online community and printing operations have caused the company?s sales to grow from $8 million USD in 2008 to $60 million USD in 2010.

Shanda Games Limited is a spin-off of Shanda Interactive's online games business that develops and licenses online gaming IP. Shanda Games was spun off of Shanda Interactive in 2009 when it filed with the SEC to raise up to $1.1 billion in an initial public offering. The company, which was founded in 2001, listed on the NASDAQ under the symbol GAME. The deal faltered at the start, dropping 14% in the first day, and never recovered. Shanda now trades 45% below its debut price of $12.50 at $6.90.

Cloudary plans to list on the NYSE. BofA Merrill Lynch (NYSE:BAC) and Goldman Sachs (NYSE:GS) (Asia) L.L.C. are the lead underwriters on the deal. No pricing terms were disclosed.

Source: Shanda Spinoff Cloudary Corporation Seeks $200 Million IPO