CINEMA

Imax China, investors seek up to US$276 million in Hong Kong IPO

PUBLISHED : Tuesday, 22 September, 2015, 10:04am
UPDATED : Tuesday, 22 September, 2015, 10:05am

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Imax Corp's Chinese business and the unit’s existing owners are seeking to raise as much as US$276 million in a Hong Kong IPO as the use of large-screen cinema technology expands in the world’s second-largest economy.

Imax China Holding and its investors are offering a combined 62 million shares at HK$29.80 to HK$34.50 apiece, according to terms for the deal obtained by Bloomberg.

The selling shareholders are Mississauga, Ontario-based Imax, as well as Chinese private-equity firms FountainVest Partners and China Media Capital, the terms show. 

The deal would add to the US$20.1 billion raised through first-time share sales in Hong Kong this year, according to data compiled by Bloomberg. Companies that priced such offerings since the Chinese stock market’s US$5 trillion rout began in mid-June have fallen an average 21 per cent from their sale prices when adjusted for deal size, the data show. 

Imax China’s net income excluding some items more than doubled in the first half of 2015 to US$18.3 million, from US$8.6 million a year earlier, according to a September 15 pre-listing filing with the Hong Kong stock exchange. Revenue increased 57 per cent to US$43.9 million.

The company’s largest customer is billionaire Wang Jianlin’s Wanda Cinema Line, the nation’s largest theatre operator.

There were 221 Imax theatres showing commercial films in mainland China at the end of June, as well as four in Hong Kong and eight in Taiwan.

Imax China also has 217 theatre systems in its backlog that are scheduled to be installed, the pre-listing filing shows.

Imax China aims to price the offering September 30 and begin trading October 8. Morgan Stanley is the sponsor of the offering, according to the pre-listing filing. Goldman Sachs Group is also among banks arranging the sale.