You will be redirected back to your article in seconds

IMAX China Shares Higher on Trading Debut

Shares of IMAX China, the regional spin-off from IMAX Corp., began trading Thursday morning in Hong Kong.

By the market’s lunchtime trading halt the shares traded at HK33.2 apiece, a 7% gain on the HK$31 price at which they had been offered to investors. In the afternoon session, the shares rose further, reaching HK$34.6, at the 4 pm close of trading.

IMAX also revealed that it had signed a deal with China’s Omnijoi Cinema Development for a further 15 revenue sharing screens. This deal brings Omnijoi Cinemas’ total IMAX commitment to 31 theaters and makes the exhibitor the third-largest IMAX exhibitor partner in China and fifth-largest globally.

The IMAX China listing is the first IPO of a globally known brand in Hong Kong since the recent stock market turbulence in China, and the offer price was last week set at the low to middle end of the previously indicated range.

According to a filing Wednesday, the retail portion of the offer open to the public was only 77% subscribed. However, the company reported that the institutional portion of the offer was oversubscribed.

The filing revealed that the company raised a final US$58.2 million (HK$451 million), 60% of which will go towards new theater systems and equipment. Another 15% will go towards the cost of its digital conversion facility. A further 15% will go into a fund for investments, including film content investments.

“We believe [the share listing] provides investors the ability to access our IMAX China business directly, and provides greater clarity into the performance of those assets in the fastest-growing entertainment market in the world. Going public has been part of our long-term China strategy, and we believe the introduction of local Chinese investors into the business will further solidify our position in the Chinese market,” IMAX CEO Richard L. Gelfond.


Omnijoi, previously known as Jiangsu Eudemonia Blue Ocean Cinema Development, already has over 15 locations of five star Cineplex as of May 31, 2015. The company will invest billions to build 150 Cineplexes with 1,200 screens and become a leading exhibitor in China.

“This partnership is a direct result of the success of our existing IMAX theatres that have delighted our guests with the best Chinese and Hollywood films in the world’s most immersive cinematic format,” said Yang Shu, VP of parent company, Omnijoi Media Group.

In the IMAX China prospectus, IMAX revealed that it is currently trying to swing its China business further in favour of a revenue share. That means it incurs more cost up front, but a bigger split of theatrical grosses over a longer period of time.

More Biz

  • Apple Event: Everything We Learned From

    Everything We Learned From Today's Apple Event

    After revealing new services in news, finance, and gaming, Apple CEO Tim Cook kept the biggest, most anticipated announcement until last. Cook, along with heads of worldwide video programming Zack Van Amburg and Jamie Erlicht, and a whole group of Apple’s creative talents, presented the company’s new Apple TV+ streaming service, which is slated to [...]

  • Wynn Nightlife Announces Residency for Roving

    Wynn Nightlife to Host Las Vegas Residency for Roving Spanish Party Elrow

    One of Las Vegas’ biggest music players is doubling down on the power of a global brand instead of just a single DJ to help them stay on top of Sin City’s increasingly competitive clubbing scene. Wynn Nightlife has announced a year-long residency and partnership with Spain’s Elrow, a respected Ibiza-born party that last year [...]

  • PledgeMusic Down to a ‘Skeleton Staff,’

    PledgeMusic Down to a ‘Skeleton Staff,’ Although a Potential Buyer Is in the Wings

    PledgeMusic, the direct-to-fan marketplace that has faced serious financial troubles in recent months, is down to a “skeleton staff” and payroll in the U.S. office ceased within the last month, sources close to the situation tell Variety, although a potential buyer is “very interested” in the company and has been in due diligence for several [...]

  • Michael Avenatti

    Michael Avenatti Arrested on Bank Fraud and Extortion Charges

    Attorney Michael Avenatti was arrested Monday and is facing federal charges on both coasts of bank fraud, misappropriating client funds, and trying to extort Nike. Prosecutors in the Southern District of New York allege that Avenatti tried to extract more than $20 million from Nike, and said that if the company did not pay him, [...]

  • Daily Show Viacom

    DirecTV, Viacom Avert Blackout After Marathon Negotiation

    DirecTV and Viacom have agreed on a carriage renewal pact covering a raft of Viacom’s cable channels after a marathon negotiation over the weekend. In a joint statement early Monday, the companies said: “We are pleased to announce a renewed Viacom-AT&T contract that includes continued carriage of Viacom services across multiple AT&T platforms and products. [...]

  • Discovery CEO David Zaslav Sees 2018

    Discovery CEO David Zaslav Sees 2018 Compensation Soar to $129.4 Million

    Discovery Inc. president-CEO David Zaslav is once again making headlines for an enormous compensation package. Zaslav’s 2018 compensation soared to $129.44 million in 2018, fueled by stock options and grants awarded as the longtime Discovery chief signed a new employment contract last July that takes him through 2023 at the cable programming group. Zaslav received [...]

  • Jonathan Lamy RIAA

    Jonathan Lamy Stepping Down From RIAA

    Jonathan Lamy, the Recording Industry Association of America’s longtime executive VP of communications and marketing, is stepping down from his post after 17 years, he announced today. As he put it in an email to Variety, “I started back in 2002, which means it’s been 17+ years, four different RIAA CEOs, three format changes and [...]

More From Our Brands

Access exclusive content