South Korea's Spackman Entertainment Group Attracts High Demand for IPO

All 69.44 million placement shares have been validly subscribed to raise about $14.55 million as of Friday, ahead of the film production group's Singapore listing beginning on July 22.

SEOUL — South Korean film production group Spackman Entertainment Group completed its initial public offering on Friday, receiving strong demand from Asian institutional investors and high-net-worth individuals for the 69,440,000 placement shares on offer.

Listing and trading of Spackman’s shares are slated to begin at 9 a.m. Tuesday, on the Catalist Board of the Singapore Exchange Securities Trading Limited. The company behind such internationally buzzed films as Bong Joon Ho's Snowpiercer, it is the first Korean film production firm to list in Singapore.

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Havenport Asset Management Pte. Ltd., Atlantis Investment Management (Hong Kong) Limited, Atelier Portfolios – Asian Labels & Brands Limited, JF Asset Management Limited and Aegis Portfolios Manager Pte Ltd were each allotted more than 5 percent of the placement shares. As at the close of the IPO at 12 p.m. Friday, all 69,440,000 placement shares (placement price of about $0.20 or 0.26 Singapore dollars per share) have been validly subscribed, raising approximately $14.55 million (18.05 million Singapore dollars).

"I am very encouraged at the strong support and interest in our IPO. We believe this is a testament to the reputation and successful commercial track record associated with our two wholly owned film production subsidiaries, Zip Cinema and Opus Pictures," said Charles Spackman, executive chairman of the group.

Zip Cinema and Opus Pictures are two leading local production firms behind some of Korea's latest box-office hits such as Snowpiercer, Cold Eyes and All About My Wife.

"As the first Korean film production group to list in Singapore, the listing will offer investors in Singapore and in the region a unique opportunity to invest directly in the growth of the Korean film and entertainment industries," he added.

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Spackman Entertainment intends to utilize the net proceeds of approximately $8.74 million (10.84 million Singapore dollars) it will receive from the IPO to invest into films produced by the group or third parties; expand its operations via acquisitions, joint ventures and investments; establish overseas offices; and general working capital purposes. The group currently has a total of six Korean film projects in development, preproduction, or production, all to be released by 2016.

PrimePartners Corporate Finance Pte. Ltd. was the issue manager, sponsor and placement agent in connection with the IPO. In addition, PPCF will be the Spackman Entertainment’s continuing sponsor following its listing on Catalist. Duane Morris & Selvam LLP acted as solicitors to the IPO and the listing and legal advisors as to Singapore law to the company.