On Thursday, IMAX Corporation (USA) (NYSE:IMAX) unveiled its plans to for an initial public offer for its shares in Hong Kong.
The IPO is an indicator of the company’s growing influence and performance in China which is the second biggest film market in the world. IMAX has been experiencing immense success over the past few years. Part of its success has been fueled by the rapidly changing film industry especially with the release of blockbuster films that have been raking in large revenues.
IMAX has been a major contributor in most of the film with its participation in the production process. The quality of movies made with IMAX cameras and 3D effect is unparalleled. The firm has not yet disclosed the date for the IPO launch but the management has already confirmed that it has plans for its stock to be listed in China’s stock market. However, it is highly anticipated by investors.
The company has rapidly expanded its business all over the world including Africa. Its Chinese division has been experiencing enormous success in China. It has even collaborated with other Chinese companies such as Wanda Cinemas to boost its efforts. The partnerships are also very important for the local firms to promote mutual growth.
So far,IMAX Corporation (USA)(NYSE:IMAX) has 239 cinema screens the country and is already making plans to add another 219 new ones to cater to the large population. The Motion Picture Association of America reported that China’s Box office income went up by 34% in 2004, an increase that gained $4.8 billion.
In its IPO prospectus, the company revealed that it plans to chase opportunities that will allow it to bring live sports, TV shows, and other content onto its screens. The company set the wheels for an IPO rolling in 2014 after it disposed 20% of its stake in its Chinese division. The company sold the shares to CMC Capital Partners for $80 million.
IMAX also announced that it plans to bring up a Digital remastering facility which will be used to convert Chinese films into the IMAX format. The company expects the facility to be completed by 2016.