Huayi Brothers Media, one of China’s largest private film companies, is planning to raise $91m (RMB620m) via a listing on the Shenzhen Stock Exchange’s ChiNext board for smaller companies.
The China Securities Regulatory Commission said it would be reviewing the application on Sunday, Sep 27.
If it passes the review process, Huayi Brothers will become the first film company to float in China, beating state-owned China Film Group Corporation, which is also planning an IPO.
In a prospectus issued by the Shenzhen Stock Exchange, Huayi Brothers says it plans to sell 25% of its shares in the company to raise $91m for movie and TV productions. The company plans to produce six films and 600 episodes of TV dramas a year.
The company also plans to invest $19m (RMB130m) in building six multiplexes over the next two years.
Founded in 1994 by brothers Wang Zhongjun and Wang Zhonglei, Huayi Brothers’ main businesses are film and TV production and artist management. The company is best-known for producing local blockbusters directed by Feng Xiaogang, including Assembly (2007) and If You Are the One (2009). The latter grossed $51.2m (RMB350m) and is so far China’s biggest ever domestic hit.
In 2008, Huayi Brothers made a net profit of $9.96m (RMB68m) from revenue of $59.88m (RMB409m).
According to the prospectus, Huayi Brothers chairman Wang Zhongjun owns more than 34% of the company, while president Wang Zhonglei owns 11%.
Alibaba Group chairman Ma Yun owns around 10% and is the third largest shareholder in the company. Other major shareholders include director Feng Xiaogang and Huayi’s contracted artists Huang Xiaoming and Li Bingbing.