Looking for News Value in People's Daily IPO

What's the equity value of a state-owned media website that relies on tax breaks, government contracts and close ties to official agencies for profits?

People's Daily Online, according to a prospectus released January 9, intends to raise at least 527 million yuan by issuing 69.1 million shares on the Shanghai Stock Exchange before the end of 2012. The prospectus did not cite a proposed price range for the stock debut.

Some analysts and investors are second-guessing the IPO plan for the online division of the newspaper of the same name, a government and Communist Party of China (CPC) flagship that plans to become the first domestically listed Internet company with a traditional, state-run heart.