Wednesday, February 01, 2006

Focus Media gearing up for expansion?

Focus Media, the largest digital signage network... well, just about anywhere, has this to say:

Focus Media Holding Limited , which operates the largest out-of-home advertising network in China using audiovisual flat-panel displays based on the number of locations and number of flat-panel television displays in its network, today announced a follow-on offering of 6,787,829 American depositary shares ("ADRs"), each representing ten ordinary shares, at a price to the public of $43.5 per ADS. 1,500,000 of these ADSs will be issued and sold by Focus Media, and 5,287,829 of these ADSs will be sold by certain shareholders of Focus Media. Focus Media will not receive any proceeds from the sale of ADSs by these selling shareholders. In addition, the selling shareholders have granted to the underwriters an option to purchase up to an additional 627,560 ADSs within 30 days from the date of the prospectus.
My guess would be that they're either fueling their growth by deploying a bunch more screens, or else they're about to start converting their DVD-powered network over to a network-connected, computer-powered one (whicih would take a bit of cash, considering how many scree

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