×

STX Eyeing $3.5 Billion Hong Kong IPO in 2018 (Report)

STX Entertainment may be edging closer to an initial public offering on the Hong Kong Stock Exchange, early in 2018.

The company could raise $500 million of fresh capital and achieve a valuation of $3.5 billion, according to a report by the Wall Street Journal that cites unnamed sources.

STX, which was founded some three years ago by Robert Simonds and Bill McGlashan, has indicated on several previous occasions that it is aiming for Hong Kong listing. The scale of the capital raising and implied valuation were not previously known. Contacted by Variety, STX had no comment on the matter.

The company is U.S.-based, but has numerous corporate and business relationships with China. Those make investment interest and the case for a listing in Hong Kong stronger.

STX attracted initial capital in 2014 from Chinese private equity firm Hony Capital and the following year struck a slate financing and distribution arrangement with leading Chinese film studio Huayi Brothers. Last year China’s giant Tencent group, which has interests ranging from games and social media to film production, and Hong Kong telco PCCW, took additional share stakes. The size of their investments was not disclosed.

A listing of STX in Hong Kong would give Chinese companies an easy route to invest in Hollywood. Investment through high profile acquisitions has been largely curtailed through several direct interventions by the Chinese government.

The company’s Jackie Chan- and Pierce Brosnan-starring “The Foreigner” is to be released in China this weekend. STX has previously scored a hit with “Bad Moms” and is aiming a sequel “A Bad Moms Christmas” for a worldwide release in November.

 

More Biz

  • Bryan Singer: New Allegations of Sex

    Bryan Singer Hit With Fresh Allegations of Sex With Underage Boys

    Bryan Singer, the director of “Bohemian Rhapsody,” is facing new allegations published in the Atlantic on Wednesday that he engaged in sexual misconduct with underage boys. In the report, four men allege that Singer had sexual encounters with them when they were teenagers in the late 1990s. One of the men, Victor Valdovinos, says he [...]

  • 'Zootopia' Land Coming to Shanghai Disneyland

    Disney to Open 'Zootopia' Land at Shanghai Theme Park

    The Shanghai Disneyland theme park is to be expanded with the construction of a themed land based on the “Zootopia” animated film and its characters. It will be the first “Zootopia” land at any Disney park worldwide. “The rapid rate of expansion at Shanghai Disney Resort demonstrates our confidence and commitment to the company’s future [...]

  • David Glasser

    David Glasser to Launch $300 Million Shingle With Ron Burkle's Backing (EXCLUSIVE)

    David Glasser, the former chief operating officer of the Weinstein Co., is launching a $300 million film and TV company with the backing of billionaire investor Ron Burkle, Variety has learned. The formation of the production outfit, named 101 Studios, marks a fresh start for Glasser, who was in line to become CEO of the [...]

  • Harvey Weinstein arrives at New York

    Judge Refuses to Pause Weinstein Class Action Case

    A judge on Tuesday denied Harvey Weinstein’s request to put a class action lawsuit on hold pending the outcome of his criminal trial. Ten women have sued Weinstein in federal court in the Southern District of New York, accusing him of violating the federal sex trafficking statute. The suit also alleges that an array of [...]

  • Andrea Ganis Promoted to President of

    Atlantic Records Elevates Andrea Ganis to President of Promotion

    Andrea Ganis has been promoted to the newly created position of president of promotion for Atlantic Records, it was announced today by Atlantic Chairman & COO Julie Greenwald and Chairman & CEO Craig Kallman. In her new role, she will continue to oversee all promotion activities for Atlantic and its subsidiary labels while serving on [...]

  • Roma

    Netflix Joins the Motion Picture Association of America

    UPDATED WASHINGTON — Netflix has joined the Motion Picture Association of America, a move that reflects its evolution as a major player in the movie business. The MPAA currently has six major studios as members, and it collected about $38 million in membership dues in 2017, according to its most recent filing with the IRS. [...]

  • Fate of 'Simpsons' Up in Air

    What Will Happen to 'The Simpsons’ as Disney Takes Over Fox?

    When “The Simpsons” ends its 30th and current season this spring, it will have racked up 663 original episodes — having a season ago passed “Gunsmoke” (635) as the longest-running scripted program in television history. But with the Walt Disney Co.’s acquisition of 21st Century Fox pending, one of TV’s least likely institutions could prove more [...]

More From Our Brands

Access exclusive content