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Business
Movie ticketing platform Maoyan plans USD 350 mln IPO in Hong Kong
CKN
2019/01/18 06:28:52
2,261
China's News, China's Financial News,Maoyan

Jan 18, 2019 (China Knowledge) - China’s largest movie ticketing app Maoyan Entertainment is looking to raise funds through an IPO on the Hong Kong stock exchange.

The company which is also backed by Tencent Holdings is planning to sell about 132 million shares at a price of between HKD 14.8 to HKD 20.4 to raise up to HKD 2.7 billion (USD 350 million).

Maoyan is starting to take orders from institutional investors for the offering today and is scheduled to list on 31st January. 10% of the total share offering will be made available to retail investors next week up to Thursday.

The company’s IPO will feature two cornerstone investors in IMAX Hong Kong and Welight capital which have pledged to purchase USD 15 million and USD 3 million worth of shares respectively.

It is reported to have 130 million monthly active users in the first half of last year and helped 95% of cinemas to sell tickets through its platform, to give it a 60% market share.

Despite being the clear market leader, the company has yet to turn a profit, recording losses of more than USD 21 million for the first 9 months of last year. The good news in this is that the company’s losses have narrowed from USD 192 million in 2017.

The company will be allocating 30% of the funds raised to improve its platform capabilities, 30% into R&D to develop technology infrastructure, 30% for potential investments and acquisitions at the rest into working capital and general corporate expenditure.

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