Imax Prices China Unit IPO Near Bottom of Range

Beijing H 2015
AP Images/Invision

The float price of $4 per share for the giant screen exhibitor's Chinese business is fixed before an Oct. 8 listing on the Hong Kong Stock Exchange.

Imax's China unit is set to make its Hong Kong Stock Exchange debut after the giant screen exhibitor priced its initial public offering on Thursday at $4 a share, as it hopes to raise up to $248 million.

Imax set the IPO price near the bottom of an expected range of $3.84 to $4.45 each for up to 62 million shares, according to a Sept. 22 SEC filing that indicated 17 percent of the company would be sold. Shares in the Imax China Holding, jointly owned with China-focused private equity firm FountainVest Partners and China Media Capital, are expected to begin trading on Oct. 8.

The Imax China business is expected to receive net proceeds of $58.2 million from the IPO, after offering commissions, while Toronto-based Imax said it hopes to secure $85.7 million from the share sale, or up to $103.7 million if the over-allotment option is exercised in full.

Imax is pushing ahead with its China unit IPO amid a recent roller-coaster ride for Chinese stock market investors. The Canadian-based exhibitor said it will use most of the IPO proceeds to expand its fast-growing theater network in China, where it has offices in Shanghai and Beijing.