Giant Interactive announced the initial terms of its public offering (proposed ticker: GA). The price range is $12-$14 and the firm plans to sell 57.2 million shares. Yes, the company may raise as much as $800 million. In fact, the market cap will be in excess of $3.3 billion.
Giant is a top operator of online games in China, and it seems like the nation is obsessed with such things. More importantly, the company’s financials are sterling, with revenues of $90.3 million and net income of $67.3 million (for the first half of 2007).
In light of other Chinese IPOs, I suspect investors won’t have any qualms with the frothy valuation.