You will be redirected back to your article in seconds

Double IPO as China’s Maoyan and Meituan Dianping Raise Cash in Hong Kong

Leading Chinese ticketing firm, Maoyan Weying has filed to launch an IPO in Hong Kong. So too has its former parent company Meituan Dianping, one of the world’s largest tech unicorns.

The Maoyan flotation, brokered by Bank of America and Merrell Lynch and China Renaissance Securities,  is expected to raise $1 billion of fresh capital, though that figure could change significantly. The company’s draft prospectus launched under the name Entertainment Plus, is heavily redacted and does not include a timetable for the sale, nor crucial details about the proportion of shares to be sold or the offer pricing.

The new cash would allow Maoyan, which last year merged with rival Weying, to keep up its fight for market share against Alibaba’s Tao Piao Piao. Maoyan claimed that it is the biggest supplier of cinema tickets, with a 60% market share, and that it has 130 million monthly active users. Maoyan raised $145 million (RMB1 billion) in a funding round last November, led by Tencent at the time of absorption of Weying. Weying itself was partially backed by the social media giant.

Online ticketing, with mobile apps to the fore, accounts for the vast majority of cinema tickets sold in China. Latest data shows that the Chinese box office continues to grow. It is up 17% so far this year, according to data from Ent Group.

The power of the ticketing platforms to cross-promote other services such as e-commerce and merchandising, and to generate vast amounts of data on the cinema industry keep the businesses attractive despite their losses. Alibaba claims part of the success of “A Dog’s Life” and the currently on release “Mission: Impossible – Fallout” is attributable to its ability to read the market and promote films accordingly.

Maoyan Weying’s prospectus shows full year losses of $11.1 million (RMB76 million) in the full year of 2017, and $17.1 million (RMB117 million) in the Jan.-June 2017. Those losses deepened to $33.7 million (RMB231 million) in the first half of 2018.

At the end of last week Meituan Dianping confirmed the offer price for its more advanced IPO plans. It aims to raise $4 billion of fresh cash and start trading with a valuation of $46 billion – $55 billion.

Meituan Dianping “founded and incubated” Maoyan, but divested it from July 2016, selling a 67% stake for $627 million (RMB4.3 billion). It followed that by selling a further 19.7% for $262 million (RMB1.8 billion) in Aug 2017.

Meituan Dianping, which has a range of online businesses with food delivery its largest segment, currently retains an 8.6% stake. Other core shareholders include Enlight Media with 49% and Tencent on 16%.

Meituan’s prospectus explains the ongoing relationship between the two groups. It says that they two have a five-year exclusive co-operation agreement, that runs until July 2021, in which Meituan will drive traffic and other resources to Maoyan.

More Biz

  • 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 [...]

  • Fox Layoffs

    Disney-21st Fox Layoffs: TV Divisions Brace for Deep Cuts

    A second day of layoffs has begun on the Fox lot in the wake of Disney completing its acquisition of 21st Century Fox on Wednesday. Longtime 20th Century Fox Television Distribution president Mark Kaner is among the senior executives who were formally notified with severance details on Friday morning. 21st Century Fox’s international TV sales [...]

  • anthony pellicano

    Hollywood Fixer Anthony Pellicano Released From Federal Prison

    Anthony Pellicano, the Hollywood private eye whose wiretapping case riveted the industry a decade ago, was released from a federal prison on Friday, a prison spokeswoman confirmed. Pellicano was sentenced in 2008 to 15 years, following his conviction on 78 charges of wiretapping, racketeering, conspiracy and wire fraud. He had been in custody since 2003, [...]

  • This image taken from the Twitter

    HBO’s Reaction to Trump’s ‘Game of Thrones’ Campaign

    Everyone wants a piece of the “Game of Thrones” lemon cake. From Bud Light to Red Bull the world of Westeros is open to a lot of brand partnerships, unless you’re using that iconic typeface to push a political agenda. In November of 2018 President Donald Trump unveiled a “Thrones” inspired poster with the words [...]

  • Leaving Neverland HBO

    'Leaving Neverland' Lawsuit Proves to Be a Judicial Hot Potato

    The Michael Jackson estate sued HBO last month for airing the documentary “Leaving Neverland,” which accuses the late King of Pop of serial child sexual abuse. Since then, the case has had a difficult time finding a judge to handle it. Three federal judges have recused themselves in the last week, citing potential financial conflicts [...]

  • Members of the public mourn at

    Guy Oseary’s New Zealand Fundraiser Nears $150,000, Continues Raising Money

    In the wake of the horrific shootings at New Zealand mosques last week that killed some 49 people, Maverick chief Guy Oseary launched a GoFundMe campaign to “support those affected by this tragedy at this very difficult time,” and began it with an $18,000 donation. Boosted by donations from many celebrities — including Amy Schumer, [...]

More From Our Brands

Access exclusive content