China MediaExpress Holdings, Inc. (fka CCME)

[derek2000]

CCME - needed cash?

"That doesn't answer the question....they needed the cash right?"

I think you are confusing multiple concepts here. Selling shares to a reputable sponsor and needing cash are two different things.

There is a culture thing here. Almost all of the private companies in China want to get listed either in China or US. It is as if being on the market give companies prestige, honor, and legitimacy.

Within China, only profitably companies got listed on the exchanges. While in general, all the companies need cash to grow, those publicly traded companies are the ones which need less cash than their peers.

In other words, in Chinese CEO's mind, it is perfectly acceptable and makes sense to sell shares to get listed no matter you need money or not.

Plus, cash is always good. It gives companies flexibility to move onto other areas. Buying another company? SWITOW? Accumulating land/buildings? Diving into a new business? With cash there are endless possibilities in a growing economy. After all, it takes money to make money.