The demand for IMAX China shares has not met expectations, according to a filing on Wednesday. (Photo : Reuters)
IMAX Corp.'s share sale of its IMAX China subsidiary in Hong Kong seeks to raise $276 million.
Some 17 percent share of the firm will reportedly be sold, according to a term sheet given to financial media. Each share had an indicative price range of HK$29.8 to HK$34.5.
The shares will begin trading on Oct 8 and the sale price is expected to be fixed on Sept. 30.
Included in those that will be sold are new shares that aim to raise funds for the firm's working capital and expansion. Existing shares from IMAX Corp., China Media Capital and FountainVest Partners will also be sold.
Financial reports have claimed that the firm's bankers have arranged for five investors to acquire shares worth $55 million.
The move comes amid the Hong Kong share market being dragged down to nearly 20 percent as a result of the rout in mainland China stocks, which began in mid-July. Nonetheless, experts predict that if the investor demand is strong enough, the share issue could be expanded to $317 million.
In a pre-listing filing as of June 30, there are 251 IMAX theaters in Greater China, covering mainland China, Hong Kong, Taiwan and Macau. The firm also has 217 screens on order from Shanghai United, CJ-CGV, and Wanda Cinema Line.
The filing has also indicated substantial transformations with the operations of IMAX China, which includes trimming down the number of its theaters that are sold outright. The changes also cover the company's aim to press for more theaters that will work on a revenue-sharing mechanism.
The document also revealed that the firm is establishing its own digital remastering office in China. The facility is slated to be opened before 2015 ends.
