(Yicai Global) Nov. 5 -- IReader’s share price hit the exchange-imposed limit of 10 percent today on the news that a unit of TikTok operator ByteDance is to invest CNY1.1 billion (USD165.5 million) to become the mobile reading platform’s third largest shareholder.

Beijing-based IReader’s stock price [SHA:603533] closed at CNY30.36 (USD4.56).

Beijing Quantum Jump Technology is to acquire 11.23 percent equity in the e-book firm by purchasing around 45 million shares at a price of CNY24.42 apiece from founder Zhang Lingyun and director Cheng Xiangjun, IReader said yesterday. Zhang and Cheng will remain the largest and second largest shareholders.

ByteDance is a leader in the fields of advertising, commercial services, search engine and technical support, IReader said. The two parties will work together to develop the online reading business by strengthening cooperation in commercialization, operations and content production, it added.

IReader, which owns the copyright to hundreds of original works, has been benefiting from the Covid-19-imposed lockdowns. Its net profit jumped 53.75 percent in the first three quarters from the same period last year to CNY166 million (USD25 million), according to the firm's latest earnings report. Its operating income was up 7.8 percent to CNY1.5 billion (USD225.9 million).

The previous third largest shareholder was a unit of internet giant Baidu, which paid CNY700 million (USD105 million) for 8.8 percent equity in March.

Editor: Kim Taylor