(Yicai Global) Feb. 1 -- Chinese ticketing firm Maoyan Entertainment's initial public offering in Hong Kong is HKD14.8 (USD1.89) per share. It has been oversubscribed 2.3 times.
Maoyan will issue 132.4 million shares worldwide and 111.1 million in Hong Kong with the maximum offering price of HKD20.4 per share. It plans to list on Feb. 4, the firm announced this morning.
IMAX Hong Kong, Welight Capital, Hylink Investment, Green Better under Xiaomi Corporation, and Prestige of the Sun are the company's cornerstone investors, and the firm's major shareholder internet titan Tencent Holdings is likewise keen to buy shares, per the firm's prospectus.
Maoyan Plus earned CNY3.1 billion (USD457 million) operating revenue in the first three quarters, up almost twofold from a year earlier, and its trading volume for live entertainment ticketing was CNY774 million (USD115.5 million), per the prospectus, which reported the firm lost CNY144 million in the first three quarters.
The company set the IPO price at HKD14.8 to adapt to the Hong Kong stock market and benefit investors and prepare for the follow-up rise in its stock price, capital market analysts believe.
Maoyan disclosed its prospectus on Hong Kong Exchanges and Clearing on Sept. 3.Wang Changtian, president of Beijing Enlight Media and chairman of Maoyan-Weying holds 48.8 percent and its chief executive, Zheng Zhihao has 2 percent. Chinese group buying website Meituan-Dianping has 8.56 percent, Beijing Weying Technology has 20.62 percent and Tencent holds 16.27 percent, per the prospectus.
Thirty percent of the funds from the financing will be used to enhance the firm's comprehensive power by providing more services, discovering more clients, increasing their loyalty and strengthening offline resources.
Another 30 percent will be spent on research, development and technology infrastructure to enhance its strength in technology and data analysis, and 30 percent is intended for sporadic potential investments and acquisitions spotted during business expansion, and the remainder will be the firm's general purpose working capital, the prospectus said.
The firm is listed under the name of Maoyan Entertainment. Maoyan-Weying, the name under which the firm operates in China, formed in 2016 when Tianjin Maoyan Culture Media acquired, then merged with its rival Beijing Weiying Technology.
Editor: Ben Armour