Film company to list shares on exchange
China’s biggest private-sector film company, Huayi Bros., plans to list its shares on one of the main Chinese stock exchanges, the company said Monday.
The company responsible for pics including “The Forbidden Kingdom,” “The Assembly” and “The Banquet” did not give details of when it would list and how much it would seek, but industry sources said it would be in the fourth quarter of this year, and the company planned to raise several hundred million yuan.
“We are preparing a stock market listing, but I can’t reveal the schedule or how much money we plan to raise,” Hu Ming, Huayi Bros.’ finance director, told Daily Variety. “There are rules we have to follow and many factors which affect this procedure.”
Huayi, which is involved in film, TV, artist management, advertising and has a music label, said late last year that it was planning a stock market listing “in order to take things to a new level” and was also planning to expand into cinema chains.
The IPO would be the first by a major Chinese filmmaker, unless the state-owned China Film Group gets in there first with its planned stock market listing.
Huayi is co-managed by Wang Zhonglei and his brother Wang Zhongjun.
Reuters reported that Huayi has hired China’s largest brokerages, Citic Securities and Merchants Securities, to advise on the planned flotation and KPMG as IPO auditor.
Huayi had previously planned to seek a listing on a Nasdaq-style market that China is preparing to launch for startup companies, but shifted its plan to the country’s main markets of Shanghai or Shenzhen to seek more funds.