Date
22 January 2017
IMAX plans to nearly double the number of its cinemas in China by 2021. Photo: Bloomberg
IMAX plans to nearly double the number of its cinemas in China by 2021. Photo: Bloomberg

IMAX China seeks US$300 mln in Hong Kong IPO

The China division of IMAX Corp. is planning to raise about US$300 million in an initial public offering in Hong Kong as early as the third quarter of this year, The Wall Street Journal reported, citing unnamed sources.

IMAX, a Canadian company listed on the New York Stock Exchange, applied to the Hong Kong stock exchange for a listing of IMAX China Holding Inc. late last month, the report said.

The company introduced its giant movie screens to China in 1998.

Box office revenues in mainland China surged 34 percent to US$4.7 billion last year from the year before.

Net profit at IMAX China rose 31 percent to US$22.8 million last year, while earnings at its parent fell 10 percent to US$39.7 million.

The Canadian company now owns an 80 percent stake in IMAX China.

It sold a 20 percent stake to CMC Capital Partners, a mainland Chinese investment fund focused on media and entertainment, and Hong Kong-based private equity firm FountainVest Partners for a total of US$80 million last year, the report said.

IMAX China, which had 239 cinemas in March, plans to add 219 by 2021.

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