Oct. 01--Despite a downturn in the stock market in China, Imax Corp. is moving ahead with plans for a public stock offering in the world's most populous country.
The Toronto-based big screen theater technology company, which has a large operation in Los Angeles, said in a regulatory filing that it will offer 62 million shares through its subsidiary, Imax China.
Shares in Imax China will be listed on the Hong Kong Stock Exchange on or before Oct. 8, with an offer price of $4 a share (HK $31), according to the filing.
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Imax, which is listed on the New York Stock Exchange, said the company and its China subsidiary -- whose investors include Imax Corp. and China Media Capital -- expect to receive as much as $161 million in net proceeds for the stock offering. The funds will help expand Imax's theater network in China.
Imax is proceeding with its stock offering even though other Chinese companies have scrapped planned IPOs in the wake of the stock market turbulence there.
Like other film industry companies, Imax views China as a key growth market, especially as the movie business slows in North America. China's box office is expected to grow 35% this year to $6.5 billion, according to Artisan Gateway, a cinema consulting firm.
Hollywood action movies shown on Imax formats have generated big box office returns in China, where Imax has an expanding network of theaters.
Imax is partners with Wanda Cinema, China's largest theater chain, owned by Dalian Wanda Group. The conglomerate bought AMC Entertainment for $2.6 billion in 2012. AMC operates the second largest theater chain in the United States.
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