You will be redirected back to your article in seconds

China’s Bona Poised to Raise $215 Million Through Local IPO

Chinese film producer and distributor, Bona Film Group is poised to raise $215 million through an initial public offering on one of China’s stock markets.

The company is expected to be valued at upwards of $2.4 million, according to Chinese news agency CGTN. That compares with just under $816 million (RMB5 billion) when the company took itself off the NASDAQ market in mid-2016.

The company provided details of its finances and its recent fund-raising in a prospectus filed at the end of last week with the China Securities Regulatory Commission. The company expects to be granted a listing on the Shenzhen A share market, but the precise timing is still the decision of the regulator.

Since taking itself off the U.S. stock market, Bona has engaged in two private funding rounds, in December 2016, and another in March this year. Those share placings brought in Alibaba, Tencent and Wanda as minority investors and provided the latest company valuation. Their stakes after the IPO will drop to 7.0%, 4.4% and 1.7% respectively.

Company founder, Yu Dong is expected to see his shareholding cut as a result of the flotation, from 35% at present to some 23%. Nevertheless, the relaunch is a huge personal gain for Yu.

He quickly became dissatisfied with his bold decision in 2010 to become the first Chinese film company to have a share float in the U.S. When other Chinese movie empires, with less impressive track records, were able to leap-frog his company, due to much higher valuations for media companies in China, he took the decision to quit the U.S. capital markets.

The company, however, is not expecting to follow that with an exit from Hollywood, despite the well-publicized problems Chinese companies are currently enduring with overseas acquisitions and investments.

Two years ago, Bona had a slate financing deal with Chip Seelig’s The Seelig Group to bankroll a selection of 20th Century Fox movies. In May this year, it set up another fund jointly with CAA, and is currently also opening a U.S. office.

More Biz

  • Plume of black smoke rising from

    Lawsuit Expected Next Week in Response to Universal Music Fire

    A Los Angeles law firm representing several Universal Music recording artists affected by the 2008 fire that destroyed a huge number of master recordings is expected to file a lawsuit as early as next week. King told Variety that he expects to sue for negligence and other torts. He declined to identify his clients, saying [...]

  • Nicholas Sparks

    Nicholas Sparks Responds as LGBT Discrimination Claim Resurfaces

    Nicholas Sparks, the prolific author of romance novels, is facing renewed allegations that he discriminated against gay students at his Christian school in North Carolina. The allegations were first leveled by Saul Benjamin, the former headmaster of the Epiphany School of Global Studies, in a wrongful termination suit he filed in 2014. Benjamin’s suit alleged [...]

  • Tyler the Creator and DJ Khaled

    Inside the DJ Khaled-Tyler, the Creator Chart Battle

    The controversy surrounding the recent chart battle between DJ Khaled and Tyler the Creator — in which a bundle promoting Khaled’s album was disqualified from adding to its sales tally for the May 24 Billboard 200 album chart, allowing the No. 1 spot to go to Tyler’s “Igor” — has been a first-class problem for [...]

  • Cuba Gooding Jr. Diversity

    Cuba Gooding Jr. Charged with Misdemeanor Forcible Touching

    Actor Cuba Gooding, Jr., has been charged with a misdemeanor count of forcible touching following an incident at a nightclub, the New York Police Department said Thursday. Gooding turned himself in to NYPD detectives on Thursday, surrounded by a throng of media. Later in the day, he was arraigned in front of Judge Herb Moses. [...]

  • Contract Placeholder Business WGA ATA Agent

    CAA Challenges Writers Guild of America's Legal Standing in Packaging Fee Lawsuit

    CAA has challenged the Writers Guild of America’s legal standing for bringing forth the lawsuit against Hollywood’s four largest talent agencies over the issue of packaging fees. CAA’s latest legal response to the suit filed by the WGA in Los Angeles Superior Court in April asserts that the guild does not have the right to [...]

More From Our Brands

Access exclusive content