China’s state-backed movie distributor, China Film Company, has announced 28 July as the date of its long anticipated initial public offering (IPO), expected to be the largest in the history of Chinese entertainment.
The distribution arm of the China Film Group will begin gauging investors’ interest from 22-25 July, before beginning the US$611 million (4.09 billion yuan) offer of 467 million shares, it told the Shanghai Stock Exchange on 20 July.
China Film, which has a 58% share of all theatrical movie distribution in China, said the capital raised from the share sale will help fund the production of 53 films and 14 television dramas, along with the construction of 91 cinemas over the next three years, which include.
After the sale, China Film Group will see its stake fall from 93% to 67%, the filing to the Shanghai Stock Exchange said.
The company’s ambition to launch an IPO was first noted in 2004 when it failed in an attempt to list on the Hong Kong Stock Exchange. Since 2010, three planned IPOs in Mainland China have been postponed.
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