IMAX plans to go through with the $300-million Hong Kong stock exchange IPO of IMAX China despite the volatile stock market.
During a Thursday morning conference call, IMAX CEO Richard Gelfond said that "the recent volatility in the mainland Chinese markets has not altered our plans and we continue to work our way through the Hong Kong IPO process, including meetings with investors and analysts."
He added: "We will make timely decisions as appropriate, based on market and business conditions."
According to Gelfond, recent corrections in the Shanghai equity markets was not as pronounced in Hong Kong. He said that IMAX still plans to continue the IPO and will keep the public posted.
With the Shanghai Stock Exchange and Shenzhen Composite markets recently dropping, the Chinese government has temporarily suspended IPOs to help stabilize the market.
Despite risks brought on by the recent financial crisis in Beijing, IMAX is confident that Chinese films will continue to grow, like the animated blockbuster "Monster Hunt," which had the biggest opening week earnings of any Chinese film ever with $282 million. The returns from "Monster Hunt" were as valuable for IMAX as any other Hollywood blockbuster.
The stock market listing of IMAX's Chinese subsidiary is part of an ongoing expansion plan to spread its business throughout greater China.
Part of these plans include building a post-production facility in China to digitally remaster local language films. At the same time, Hollywood films like "Furious 7," "Jurassic World," and "Avengers: Age of Ultron" brought big business to IMAX, allowing it to help fund its local efforts.
Aside from its IPO, IMAX has also doubled the size of its network since 2001 when it entered the market. There are currently 239 theaters in 89 cities in China, with another 219 in the backlog.
Recently, IMAX has had a foreign-focused approach, with more and more of its theaters located outside the United States.