×
You will be redirected back to your article in seconds

STX Entertainment Files Draft IPO Prospectus in Hong Kong

Robert Simonds’ STX Entertainment has filed a draft prospectus with the Hong Kong Stock Exchange that is expected to lead to an initial public offering of its shares in the coming months.

STX, which counts numerous investors from Greater China among its existing shareholders, would likely become the first U.S.-domiciled Hollywood entertainment firm to list in Hong Kong or China. Hong Kong, a former British colony that returned to China some 20 years ago, has one of the deepest and most orderly capital markets in Asia. It is expected to be one of the top three IPO destinations in the world leader this year.

The draft prospectus shows leading financial institutions J.P. Morgan and Goldman Sachs as sponsors of the share issue. At this early stage there is no requirement for the company to disclose details of the pricing, how much of its equity will be sold to the public or institutions, nor how much finance it expects to raise through the share sale. Subsequent drafts of the prospectus will likely be issued over the coming three or four months, with each adding new layers of detail.

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 12-15 typical films per year.

The draft prospectus shows 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. Cash on hand at the end of December had expanded to $109 million at the end of December.

STX was founded in 2011, and began operations in 2014 with the backing of TPG Growth and China’s Hony Capital. Subsequent rounds of capital raising have brought in China’s tech colossus Tencent and Hong Kong telco and media operator PCCW as investors. At the end of last year John Malone’s Liberty Global also took a stake. It is understood that none of these investors are looking to sell their shares in the IPO.

The prospectus pitches STX as being built for the new economy, with a focus on mid-budget ($30-40 million) films, and as straddling the Hollywood and China markets from the outset.  STX recently enjoyed rare crossover success with the Jackie Chan-starring U.S.-China co-production, “The Foreigner,” a dramatic action film directed by Martin Campbell. STX’s development project “Killer’s Game” with Jason Statham has financial backing from Tencent. And, upcoming sci-fi picture, “Steel Soldiers” has financial investment from Alibaba Pictures, part of China’s e-commerce giant Alibaba.

 

 

More Biz

  • Lisa Borders Time's Up

    Time's Up President Lisa Borders Resigns

    Lisa Borders has resigned as president of Time’s Up, she and the organization announced on Monday. Borders is resigning due to family issues, she said in a statement. Time’s Up COO Rebecca Goldman will now serve as interim CEO. “As Time’s Up continues to grow, I am proud of the work I have done to [...]

  • 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 [...]

More From Our Brands

Access exclusive content