Chinese advertising firm Focus Media (NSDQ: FMCN) is primarily engaged in the out-of-home market, but it does have a fast-growing, internet business that it acquired just last year for $300 million… And now the company plans to do a spinoff of the unit (Allyes Online Media Holdings) via an IPO. The company said in a release this morning that it would commence the IPO following an F-1 filing and “as market conditions permit”, which could be a while. The internet business at Focus is hot. In August the company said revenue grew 201 percent in the quarter, accounting for $76.1 million of the company’s total $211.7 million in revenue. Given this growth and the market’s longstanding love of all things Chinese internet, it’s no surprise that the company would want to take this business out from under the parent company’s umbrella. Release.

SEE ALSO: Earnings: China’s Focus Media Q2 Internet Ad Rev Up 201 Percent; Mobile ‘Push’ Ads Dropped; COO Out

Update: Analyst Tian Hou at Pali Research takes a stab at estimating Allyes’ value: “Conservatively, we believe the internet business can generate $60M in net income in 2009. If we apply a 15 – 20x multiple it gives us a $900M – $1.5B market cap. Given current market conditions, we are leaning towards the lower end of that valuation, which is how we value the $1B market cap of the IPO. If we look at the private transactions that occurred in 2007, the multiple we applied to the potential internet advertising IPO is more than conservative.  Google (NSDQ: GOOG) (GOOG, $439.08, NR) paid 10x PS for DoubleClick at a total valuation of $3.1B.  Microsoft (NSDQ: MSFT) (MSFT, $25.26, NR) paid 10x current year (2007) sales for aQuantive and 87.6x PE to 2007 projections for a total valuation of $6B.”

Not a bad return for the $300 million Focus paid for it last year.