Leading Chinese software and online gaming firm Kingsoft Corp. planned to raise US$100-300 million in a NASDAQ initial public offering (IPO) in the third quarter of this year, a source familiar with the situation said.

The company, which is profitable, aims to join a spree of Chinese firms listing on the technology-heavy exchange.

China��s online gaming market was worth US$298 million last year, and market research firm IDC expects it to grow by nearly 35 percent a year over the next five years to roughly US$1.3 billion.

Rival Shanda Networking Co. Ltd., which last year raised US$152 million in a NASDAQ IPO, operates two of the three most popular online games in China, according to IDC.

The research firm said Kingsoft��s JX Online game was the sixth-most popular game in China last year.

Kingsoft planned to sell 10 percent of its share capital through the listing, which would value it at between US$1 billion and US$3 billion, the source said.

Founded in 1988, Kingsoft says on its Web site that it is the largest software developer in China.

Its investors include top Chinese PC maker Lenovo Group, which holds more than 20 percent of the firm. Lenovo's high-profile chief financial officer, Mary Ma, is chairman of Kingsoft.

Alan Cheung, chairman of Chinese software developer Founder Holdings, also holds a stake in the company, while Kingsoft��s management holds the remainder.

Kingsoft officials could not be reached for comment, but the company has said previously it would like to list on NASDAQ. Its IPO will be sponsored by Lehman Brothers.

Other NASDAQ hopefuls from China include top Internet search engine Baidu.com, and mobile handset designer China TechFaith Wireless Communication Technology.

Source: Shenzhen Daily/Agencies