Headed by former advertising executive, Melvyn Ang, the company has been involved with films including “Ah Boys To Men,” “That Girl in Pinafore” and “We Not Naughty.”
The company is selling 37.4 million shares at S$0.25 apiece through a placing. The shares represent a mix of existing and new stock and account for 19% of the enlarged capital base.
Shares, listed as mm2 Asia, are expected to begin trading on Dec. 9 on Catalist, the second tier of the Singapore Stock Exchange. Following the sale, Ang will continue to own 63% of the company, with Philip Asia Pacific Opportunity Fund the next biggest with 8.6%.
At the placing price the company will be valued at S$51.8 million (US$39.9 million). That is a 19 times multiple of 2013-14 net earnings, which are reported as S$2.7 million (US$2.08 million).
Sale proceeds of S$5.7 million (US$4.39 million) are expected to be applied to expansion of the business beyond its base in Singapore and Malaysia, and to the production of bigger budget movies.
The company was founded in 2008 and currently has three activities, film production, distribution in Singapore and Malaysia, and sponsorship.
To date most of mm2’s production and finance has been localized in Singapore and neighbouring Malaysia. The company has, however, been involved in productions in China (“I Want You”) and in Taiwan (“Kiasu”). It also handled the release of Taiwanese drama “Café Waiting Love” in Malaysia.
The company says it has a slate of ten films in various stages of development and production. Four will release before the end of its March financial year: “Wayang Boy,” a comedy about Singaporeans adjusting to the influx of foreign immigrants; “Ah Boys To Men 3 – Frogmen,” third instalment of the army comedy franchise; “ATM,” mm2’s first Hong Kong comedy, and which explores the generation gap between youths and elderly; and “Bring Back the Dead,” in which a grieving mother resorts to supernatural forces to bring back the soul of her dead son.