Imax China Begins Trading on Hong Kong Stock Exchange
The stock listing is part of the company's ambitious plans for expansion in China, one of its most lucurative markets.
IMAX China Holding, a subsidiary of Imax Corp. and a Cayman Islands company, began trading on the Hong Kong Stock Exchange on Thursday.
Imax China shares were trading at $4.43 (HK$34.35) at 1 p.m. PST. That was up 10 percent from the initial $4 (HK$31.00) offer price.
Imax China's market debut follows an IPO drought for the Hong Kong stock market and will help nervous Chinese investors test their appetite in the coming weeks for risk.
The Hong Kong IPO is a key component of its expansion strategy for China, one of its best performing markets. "We are very pleased with the result of our IPO in Hong Kong," said Imax CEO Richard Gelfond.
He added: "We believe it provides investors the ability to access our Imax China business directly, and provides greater clarity into the performance of those assets in the fastest-growing entertainment market in the world. Going public has been part of our long-term China strategy, and we believe the introduction of local Chinese investors into the business will further solidify our position in the Chinese market."
It began trading Thursday morning in Hong Kong under the stock code HK1970.
Imax already has 251 theater screens in China, but there are 217 more planned for construction. Imax holds a 69.8-percent stake in Imax China Holding.