HONG KONG — The new share listing of Wanda Cinema Line, China’s largest movie theatre group, has been approved by Chinese regulators.
The China Securities Regulatory Commission announced its green light Friday on its website. The CSRC had previously denied the company’s application on the grounds of insufficient documentation.
The company is now expected to raise up to RMB 2 billion ($326 million) through a listing on the Shanghai stock market by the end of the year.
Parent company Dalian Wanda is simultaneously moving ahead with an IPO of its Wanda Commercial Properties unit in what is expected to be the largest listing in Hong Kong this year, raising US$5-6 billion.
According to the regulatory filing, Wanda Cinema Line is currently 68% owned by Dalian Wanda, with a further 3.8% jointly owned by the son and four brothers of Wanda founder Wang Jianlin. Dalian Wanda also controls US movie chain AM.C
Wanda Cinema Line was established in 2005 and has seen injections of capital from private equity players including Borui Yuanda (Tianjin) Equity, Shanghai Renfu Investment. and Dongwan Kaide Investment and Tianjin Sequoia Industry Equity Investment Partnership.
Wanda Cinema operates 142 multiplexes in 73 cities in China, with a total of 1,247 screens, according to the regulatory filing. Revenue last year hit RMB3.16 billion ($515 million) with net profit revealed as RMB605 million ($98.5 million).
The company says it plans to use the proceeds for further expansion and for working capital.