Shanghai Film Corporation Among List of 28 Firms Planning IPO
BEIJING — Shanghai Film Corporation Ltd. was one of 28 prospectuses posted on the website of the China Securities Regulatory Commission over the weekend, a sign that the government is seeking to revive the slumbering market for initial public offerings.
Shanghai Film Corp. is planning to raise ¥969 million ($155.63 million) in its IPO and will look for a listing on the Shanghai bourse.
Shanghai Film Corp., which is owned by the Shanghai city government, is a film production company that also distributes and exhibits movies. It also has studios, a documentary-producing unit and animation facilities. While not technically part of the Shanghai Media Group, which is also state-owned, the two groups have the same chief executive, Ren Zhonglun.
SFC wants to sell 93.5 million A shares at one yuan per share, which amounts to 25 percent of its enlarged capital. The company’s net profit in 2013 was $22.32 million last year and $16.69 million in 2012.
Proceeds from the sale will go into opening new cinemas and upgrading the existing chain, including the introduction of a digital-cinema network operating system.
Sixteen of the companies on the list are applying for the main board of the Shanghai Stock Exchange, eight for the ChiNext Board and four for Shenzhen's small- and medium-sized enterprises board.
A notable omission from the list of IPOs is China Film Group Corp., which has been planning to float part of its business for several years now.
The stock market listing of part of its business was the pet project of former CFG head Han Sanping, who recently made way at the top of the state film colossus for La Peikang, leaving the IPO’s status unclear.
Investors had been worried that China had effectively frozen IPOs, after no new companies were granted permission to seek a listing for nearly two months. The CSRC told investors last week that China had not closed its window for IPO applications.
China allowed initial public offerings on the country’s two bourses to resume earlier this year after a hiatus of 14 months, allowing around 50 already approved companies to list on the Shanghai and Shenzhen exchanges.
There are still 600 companies waiting for permission to list. Applications must still receive the approval of the CSRC.