Two Hong Kong film companies - production house Milkyway Image and distributor Panorama International Holdings - plan to float on Hong Kong's Growth Enterprise Market (GEM) in the next few months.
Milkyway - which is 50% owned by Hong Kong producer-director Johnnie To - is understood to be seeking a listing at the end of June. The company plans to raise up to $7.7m (HK$60m) to enable it to finance and retain rights to more of its films.
To is one of Hong Kong's most successful producers and has churned out a string of hits since launching Milkyway six years ago. Recent credits include Fat Choi Spirit, which grossed $2.5m (HK$19.2m) when it was released in February, and Love On A Diet, Hong Kong's second highest-grossing film last year with $5.1m (HK$40.3m).
Meanwhile, Panorama chairman Allan Fung plans to raise $4.2m (HK$33m) on the GEM to build the company's video library and expand its distribution network into China. The company already has video distribution operations in five South-East Asian markets and plans to open an office in Guangzhou in Southern China by the end of the year.
"We believe this is the perfect time to enter the Chinese market," said Panorama COO James Fung. "The Chinese government is cracking down hard on piracy and the situation has actually improved in the last six months."
Panorama, which forecasts net profit of $1.9m (HK$15m) for the year to March, plans to sell 100 million shares at 33 HK cents.