×
You will be redirected back to your article in seconds

STX Targeting August IPO in Hong Kong (Report)

Hollywood mini-studio STX Entertainment is looking at going ahead with its planned IPO in Hong Kong as soon as next month.

Hong Kong finance industry sources Monday echoed a report in the South China Morning Post quoting John Zhao of Hony Capital saying August was a likely date for STX’s share sale and finance-raising exercise. Hony is a significant STX investor.

STX filed an early draft of its sale prospectus in April with leading financial institutions J.P. Morgan and Goldman Sachs as sponsors of the share issue. There was no requirement at that stage for the company to disclose details of the pricing, how much of its equity would be sold to the public or institutions, or how much new capital it could expect to raise through the share sale.

STX has numerous Greater China financial backers including Hony, Tencent and Hong Kong telco and media operator PCCW.

The Hong Kong stock market is currently a red-hot venue for IPOs. It recently saw the listing of Chinese live-streaming company Inke, and the blockbuster sale of smartphone maker Xiaomi. Shares in Xiaomi closed at HK$21 on Friday, up 23% from their debut.

STX’s draft prospectus showed revenues in the financial year to end-September 2017 reaching $201 million. Losses in the same period were $11.8 million. The subsequent quarter to end-December showed revenues climbing 41% to $93 million, with losses of $28.1 million.

The prospectus describes an early-stage growth company that books film and TV project development and production expenses as pure cost in its profit-and-loss statement. As the company releases more films into the market, revenues will catch up. It says that, once running at full speed, STX expects to release 12 to 15 films per year.

STX recently enjoyed crossover success with the Jackie Chan-starring U.S.-China co-production “The Foreigner.” It is also involved in “Killer’s Game” with Jason Statham, which has financial backing from Tencent, and in Tencent Pictures’ “Zombie Brother.” Its upcoming sci-fi picture, “Steel Soldiers,” has financial investment from Alibaba Pictures.

More Biz

  • Jussie Smollett Good Morning America

    Jussie Smollett Angrily Denies Complicity in Attack

    Attorneys for “Empire” actor Jussie Smollett issued a statement Saturday denying that he orchestrated his Jan. 29 assault, and saying he is “angered” and “devastated” by recent developments in the case. Chicago police want to interview Smollett, after learning new evidence from two Nigerian brothers who were released on Friday night. Local media outlets have [...]

  • Walt Disney Archives Founder Dave Smith

    Walt Disney Archives Founder Dave Smith Dies at 78

    Walt Disney Archives founder Dave Smith, the historian who spent 40 years cataloging and preserving the company’s legacy of entertainment and innovation, died Friday in Burbank, Calif. He was 78. Smith served as Disney’s chief archivist from 1970 to 2010. He was named a Disney Legend in 2007 and served as a consultant to the [...]

  • Colin Kaepernick Kneel

    Colin Kaepernick, Eric Reid Reach Settlement With NFL

    Colin Kaepernick and Eric Reid, two football players who alleged the National Football League colluded to oust them from the game after they started kneeling in protest of racial inequality during the playing of the national anthem, have reached a settlement in the matter, according to a statement from the sports organization and lawyers representing [...]

  • R. Kelly

    R. Kelly Could Be in ‘Big Trouble’ Over Alleged New Sex Tape, Attorney Says

    Strong allegations of sexual misconduct have followed R. Kelly for 25 years, but the singer has always managed to slip free. Yet reports that a videotape of him sexually assaulting an underage girl, combined with the outcry surrounding the Lifetime documentary “Surviving R. Kelly,” means that public sentiment, at the very least, is definitely not [...]

  • Christian Bale as Dick Cheney in

    New Media Residuals and Feature Films Contribute to Spike in Writers' Pay

    The outlook for members of the Writers Guild of America has brightened — even amid pervasive uncertainty in the entertainment industry. According to the most recent report to WGA West members, earnings surged 2.8% to $1.41 billion in 2017, thanks mostly to gains in feature films and new-media residuals. Total covered earnings for WGA West [...]

  • Joe Dante Gremlins

    Hollywood Execs Seek Licensing Deals at the New York Toy Fair

    On Feb. 16 more than 30,000 studio executives, buyers and toy company reps will gather in Manhattan for the annual Toy Fair New York, all vying for market share and trying to snag the latest hot trend in a fast-changing industry. Those working the film side of the business will focus much of their attention [...]

  • Lady Gaga Bradley Cooper A Star

    Universal Music Group Fuels 11.3% Rise in Vivendi's 2018 Revenues

    Vivendi’s revenues were up 11.3% to €13.93 billion ($15.7 billion) in 2018, powered by Universal Music Group, which delivered such hits as the “A Star Is Born” soundtrack and Drake’s new album. UMG’s revenues climbed by 10% to €6 billion ($6.8 billion) compared to 2017. On top of the “A Star Is Born” soundtrack, the [...]

More From Our Brands

Access exclusive content