0023ae82ca0f161e977602.jpg (Photo : China Daily )
The leading cinema chain in China is listing 60 million shares, or around 10.7 percent of the company, as part of a revised initial public offering (IPO).
According to unidentified sources, Wanda Cinema Line Corp. reduced the magnitude of its original plan, from 2 billion yuan to 1.26 billion yuan ($203.26 million).
Controlled by Dalian Wanda Commercial Properties Co. Chairman Wang Jianlin, who is also one of the country's wealthiest individuals, the theater business stated that it plans to use the finances created by the IPO to launch 50 new cinema complexes onto the Chinese marketplace.
The decision to scale back by Wanda Cinema is apparently due to an indifference from the corporation regarding the amount raised through the IPO. Although a Dalian Wanda representative maintained silence in response to media requests, in line with the typical conduct of companies during the period leading up to an IPO, one of the unnamed sources told China Daily:
"Wanda Cinema doesn't care how much it will raise in the IPO. The key of the listing is to open doors for the company's future development and expansion."
The IPO is scheduled to commence on Wednesday, with BOC International (China) Ltd. as the lead underwriter, and has been viewed as consistent with the aspirations of Wang, a billionaire who is a dominant shareholder in the AMC Entertainment Holdings Inc. cinema chain, America's second-largest. Reportedly, Wang is seeking to control around one-quarter of the world's cinema outlets by 2020.
Industrial Securities reported that 14.2 percent of China's 29.6 billion yuan movie market in 2014 was under the control of Wanda Cinema.
