If successfully listed on SSE, Huayi will become the third Chinese private entertainment group to be listed, after Asian Union Film and Media and Chengtian Entertainment Group.
Earlier this year, two of China 's state-owned film groups, China Film Group and Shanghai Film Group, also announced their IPO plans; both plan to enter the Shanghai Stock Exchange by the end of the year.
Wang did not reveal the amount of funds Huayi intends to raise in the IPO plan. However, he said he prefers to raise money from bank loans. He said the media group is in talks with a bank to borrow between $28.45m and $42.68m (RMB200m-RMB300m) for 500 episodes of TV dramas.
Shenzhen Development Bank had offered a loan of $14.23m (RMB100m) for the film The Banquet and last year China Merchants Bank offered a loan of $7.11m (RMB50m) for the film Assembly. Both films have grossed over $14.23m (RMB100m) solely in mainland China.
'Our business has been growing more than 50% for three years in a row, which has met with the demands of the board of directors,' Wang told local media. 'We have the best profit-making ability and have a complete link between production, sales and distribution.'
Wang added that the funds raised via the IPO will be used in building cinemas, which signals that Huayi is entering the film exhibition sector.
It is understood that Huayi began its IPO plan in June 2007, when local businesses such as Focus Media and some private equity groups invested $20m in Huayi Media Group. Between 2004 to 2006, Huayi had received investment from Tom.com, Hurray Holding (for Huayi Brothers Music) and some private equity initiated by Ma Yun, founder of internet business site Alibaba.
Huayi Brothers Media is in charge of the group's film, TV and music production businesses, as well as an artist management company and entertainment marketing firm. In terms of revenue-making, film, TV and artist management each contribute a third of the group's revenue.