IDG Technology Venture Investment Inc. and Oak Investment Partners certainly hope so. Following a $30 million round of venture capital, online advertising company Allyes Information Technology is planning an IPO on the Nasdaq exchange and eyeing acquisition candidates.

"We believe that out of the Internet space, this will be the best received IPO next year," said Young Guo, general partner at IDG, which holds 40% of Allyes. Guo, who estimates the offering will come mid-year, added that companies the same size as Allyes tend to raise $80 million to $100 million in an initial public offering.

Allyes provides technology for serving ads, operates the largest online ad agency in China, and also has an affiliate marketing business. Guo described the company as a clear leader in its sector in China.

The seven-year-old company already accounts for at least 10% of the $250 million online advertising market in the country and aims to double its revenue next year, said Guo. Allyes currently holds 80% market share in the ad serving technology business, according to the investor.

IDG is so confident of Allyes' success because advertising is one of the remaining Internet sectors that is dominated by a private company, said Guo. Indeed, the search, gaming and portal sectors are full of public companies like Baidu.com Inc., Shanda Interactive Entertainment Ltd. and Sina Corp.

A number of investment banks have expressed interest in taking the company public, said Guo. In preparation for the IPO, Allyes recently hired Kevin Wei, the former internal auditing chief for LG.Philips Displays, as chief financial officer. Leon Lu has also joined Allyes from an ad agency to serve as co-chief operating officer.

IDG has already seen some of its Internet investments exit successfully on the Nasdaq, including Baidu and Ctrip.com International Ltd. Baidu's stock more than quadrupled the offering price, resulting in the biggest one-day gain of an IPO since since Selectica Inc.'s 371% climb in 2000. Since January, Ctrip's stock has risen 30%.

IDG, which invested $2 million to $3 million in the company's Series A round, and new investor Oak Investment Partners co-led the Series B round of venture capital.

Most of the $30 million round will fund acquisitions of private competitors and others in the online advertising sector, said Guo. Allyes has been in active negotiations for acquisitions over the past six months and is waiting for the right price.

"It's the option of the company now, when they want to close which acquisitions," said Guo. Allyes will also devote the funding to branding and hiring. The company has about 150 employees today.