Redgate Media tipped to seek Nasdaq listing
Beijing-based Redgate Media, a multimedia holding group and parent of Hong Kong-listed magazine publisher One Media Group, is considering a Nasdaq listing to raise up to US$150 million, sources said.
Talk of the planned listing emerged at the end of a week in which the shares of subsidiary One Media surged by 29 cents or more than 56 per cent to end Friday at 80 cents. Responding to a request from Hong Kong Exchanges and Clearing, One Media directors, after the close of trade said they were not aware of any reason for the share movement.
Together with the six magazine titles of One Media, Redgate has interests in radio programming and outdoor media advertising, as well as streaming content for mainland mobile telephone and broadband internet users. It is planning capital raising to fund its expansion into mainland television, sources said.
'We chose a Nasdaq listing as there is strong demand in the market for investment in the mainland media sector and this will lead to a better valuation,' a source said.
While a Nasdaq-listed media company might trade at an earnings multiple of up to 35 times, the source said, Television Broadcasts, Hong Kong's biggest media firm by market capitalisation, traded at around 17 times historical earnings.
Redgate Media was founded by a team led by former Time Warner senior executive Peter Brack and Robby Yung, founder and chief executive of One Studio, a mainland software development consultancy.
It rose to prominence in the Hong Kong media sector two years ago when it merged its mainland magazine business with Ming Pao Enterprise's magazine business and formed One Media Group.
Mr Brack, chairman and chief executive of Redgate and chief executive of One Media Group, declined to comment on the listing plan but said the company would consider entering the capital market in the future to fund further growth.