Entertainment company G.H.Y Culture & Media Holding lodged its final prospectus yesterday ahead of a mainboard listing.
It is offering 21.7 million shares at 66 cents each in its initial public offering (IPO), comprising 18.7 million placement shares and three million under the public offer.
Its market capitalisation will be about $708.7 million after the IPO.
The public offer opened yesterday and closes at noon next Wednesday, with trading expected to start next Friday.
Cornerstone investors have also struck agreements with the firm for around 162.7 million cornerstone shares, of which 141.2 million will be newly issued and 21.5 million will be vendor shares owned by investment holding firm Taiho Holding and group adviser John Ho.
The cornerstone investors include Osim International founder Ron Sim, brand developer V3 Brands and investment firm Yinson Capital.
The IPO and issuance of new cornerstone shares will generate about $115.1 million in net proceeds, of which $101 million will be due to the company.
Proceeds will be used to invest in production, acquisitions and alliances to expand its TV and film productions and concert segments.
G.H.Y’s core business is producing and promoting dramas, films and concerts in the Asia-Pacific region. It also provides costumes and props, and engages in talent management and make-up services.
Net profit stood at $13.1 million for the first half of the year, up from $11.8 million a year earlier and before it introduced concert production and costumes, props and make-up services.
It posted net profit of $12.4 million last year after a net loss of $1.3 million in the period from March 22 to Dec 31, 2018.
The group does not have a fixed dividend policy, but intends to recommend payouts of at least 30 per cent of net profit after tax for this year, excluding the $10 million in 2020 and 2021 dividends declared by the board.
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