Shanghai Film Corporation Ltd. is one of 28 prospectuses posted on the website of the China Securities Regulatory Commission at the weekend, a sign that the government is seeking to revive the slumbering market for Initial Public Offerings.
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Shanghai Film Corp, which is owned by the Shanghai city government, is a film production company that also distributes and exhibits movies. It also has studios, a documentary producing unit and animation facilities. While not technically part of the Shanghai Media Group, which is also state-owned, the two groups have the same chief executive, Ren Zhonglun.
SFC wants to sell 93.5 million A shares at one yuan per share, which amounts to 25 percent of its enlarged capital. The company’s net profit in 2013 was $22.32 million (139 million yuan) last year and $16.69 million (103.99 million yuan) in 2012.
Proceeds from the sale will go into opening new cinemas and renovating and upgrading the existing chain, including the introduction of a digital cinema network operating system.
Sixteen of the companies on the list are applying for the main board of the Shanghai Stock Exchange, eight for the ChiNext Board and four for Shenzhen's small- and medium-sized enterprises board.
A notable omission from the list of IPOs is China Film Group Corporation, which has been planning to float part of its business for years now.
The stock market listing of part of its business was the pet project of former CFG head Han Sanping, who recently made way at the top of the state film colossus for La Peikang, leaving the IPO’s status unclear.
Investors had been worried that China had effectively frozen IPOs, after no new companies were granted permission to seek a listing for nearly two months. The CSRC told investors last week that China had not closed its window for IPO applications.
China allowed initial public offerings on the country’s two bourses to resume in early 2014 after a hiatus of 14 months, allowing around 50 already approved companies to list on the Shanghai and Shenzhen exchanges.
There are still 600 companies waiting for permission to list. Applications must still get the approval of the CSRC.
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