Imax China Unit IPO to Raise Up to $276 Million in Hong Kong

Richard Gelfond - H 2015
AP Images

Richard Gelfond - H 2015

The giant screen exhibitor, led by CEO Richard Gelfond, also unveiled two new theater deals in China as part of regional expansion plans.

Imax has set a price range for the initial public offering of its China unit on the Hong Kong Stock Exchange.

The giant screen exhibitor, led by CEO Richard Gelfond, on Tuesday outlined a price range of $3.84 to $4.45 for up to 62 million shares to be offered as part of the stock market listing, according to an SEC filing. Imax is planning to raise up to $276 million in the IPO of Imax China Holdings.

The IPO could raise as much as $317 million including over-allotments. Imax China plans to set the final IPO price on Sept. 30 and begin trading on the Hong Kong market on Oct. 8.

Imax's filing for an Hong Kong IPO was preceded by the sale of a 20 percent stake in its expanding China business for $80 million to CMC Capital Partners, a media- and entertainment-focused investment fund, and FountainVest Partners, a China-focused private equity firm.

The investment in Imax China Holding gave the Canadian-based exhibitor a partner and on-the-ground guidance in China considered necessary to further expand in that market. The Hong Kong IPO will be accompanied by Imax continuing to expand its screen count in China, screening tentpole Hollywood movies and Chinese titles as it navigates local regulatory and market waters.

Imax also unveiled a deal for five revenue-sharing theaters with Stellar Cinemas in China and a separate two-theater deal with Better Life Commercial China Share Co., a Chinese commercial developer.