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Reuters

IMAX China, majority-owned by the namesake giant-screen movie theatre equipment maker, has filed for an initial public offering in Hong Kong, looking to benefit from booming entertainment demand in the world's second-largest economy.
IMAX China did not disclose the planned size of the listing, intended to raise funds for expansion, and which has Morgan Stanley as a sponsor.
The IPO would be the first by a major global brand in Hong Kong since 2011, when companies such as Prada Spa, Samsonite International and MGM China went public in the city. It precedes plans by firms such as restaurant operator Yum Brands to spin off their China business.
The company was valued at US$400 million when IMAX Corp sold a stake of 20 per cent to two private equity firms last year.
It has strong ties to the mainland's largest movie chain, Wanda Cinema, which makes up nearly half of all IMAX theatres in the country and nearly a quarter of IMAX China's revenue.
Wanda Cinema Line shares have soared almost nine times in value since its IPO in Shenzhen in early January.
IMAX China had 239 theatres in Hong Kong, Taiwan and on the mainland at the end of March, with commitments to build another 219, its preliminary IPO filing showed. About 174 of those are expected to be built between 2015 and 2018.
The mainland film industry has grown nearly 31 per cent a year on average from 2010 to 2014, with the pace forecast to accelerate to 35.2 per cent a year for the 2014-2018 period, IMAX China said. The boom will be driven by a growing urban population and disposable income.
With the expansion, China would surpass the US in 2017 to become the world's largest market in terms of box office receipts with US$11.7 billion in revenue. US box office receipts, with expansion slowing to a meagre 0.5 per cent a year, are set to reach US$11.3 billion in 2017.
IMAX Corp owns 80 per cent of IMAX China, which operates in Hong Kong, Taiwan and the mainland, after selling a 20 per cent stake for US$80 million in April last year to private equity firms CMC Capital Partners and FountainVest Partners. It posted 2014 profit of US$22.6 million on revenue of US$78.2 million, versus US$17.4 million on revenue of US$55.9 million in 2013.


Movie-screen giant IMAX China files for IPO in Hong Kong

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Company betting on booming film demand on mainland China


Movie-screen giant IMAX China files for IPO in Hong Kong

.css-1c6uqr6{color:inherit;font-weight:inherit;font-size:inherit;font-family:inherit;line-height:inherit;overflow-wrap:break-word;}Company betting on booming film demand on mainland China

Company betting on booming film demand on mainland China