×
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

  • NEW YORK, NY – JUNE, 24:

    LGBTQ Stars Honored at Variety’s Power of Pride Celebration

    New York City felt the full power of pride on Monday, as Variety celebrated its inaugural issue devoted to the annual recognition of LGBTQ people worldwide. At an intimate gathering at lower east side Manhattan hotel The Orchid, rooftop bar Mr. Purple hosted Variety’s cover stars and luminaries for cocktails and the unveiling of the [...]

  • Motown Seeks to Block 'O-Town' Trademark

    Motown Seeks to Block 'O-Town' Trademark

    UPDATED: The boy band O-Town briefly rose to fame in 2000, with a star turn on MTV’s reality series “Making the Band.” But the reformed group has just one obstacle to its efforts to trademark its name: Motown Recordings. The label’s parent company, Universal Music Group, is trying to block the band from registering “O-Town” [...]

  • Alyssa Milano

    Alyssa Milano Settles $10 Million Suit With Former Accountant

    Actress Alyssa Milano has settled a legal battle with her former accountant as the case was on the verge of going to trial. Milano and her husband, agent David Bugliari, filed suit in 2017, alleging that accountant Kenneth Hellie had forged her signature on checks, failed to pay overdue bills and taxes and allowed costs [...]

  • J Balvin ‘Amicably’ Parts Ways With

    J Balvin ‘Amicably’ Parts Ways With Longtime Manager Rebeca Leon

    J Balvin and his longtime manager Rebeca León have “amicably” parted ways, reps for the singer and León confirmed to Variety. The news was first reported by Billboard. León — who also oversees the careers of fast-rising Spanish singer Rosalia as well as Colombian superstar Juanes, with whom she founded Lionfish Entertainment — began managing Balvin early in his career [...]

  • Ann Sarnoff Headshot

    Warner Bros. Taps BBC Studios Americas Chief Ann Sarnoff as CEO (EXCLUSIVE)

    Warner Bros. has tapped BBC Studios Americas president Ann Sarnoff as its new CEO, a surprise pick that is sure to shake up the venerable studio. Sarnoff becomes the first woman to head Warner Bros. in its nearly 100-year history. She was under the radar during WarnerMedia’s search for a successor to lead the studio [...]

  • The Peanut Butter Falcon

    'The Peanut Butter Falcon,' 'For Sama' Win Top Awards at Nantucket Film Festival

    NANTUCKET, Mass. — Adventure drama “The Peanut Butter Falcon” and Syria documentary “For Sama” emerged as the top winners at the 24th annual Nantucket Film Festival. The festival, which concludes today, as ever put the emphasis on screenwriters and emerging talents. Director Paul Downs Colaizzo’s Sundance hit “Brittany Runs a Marathon” had a number of [...]

More From Our Brands

Access exclusive content