(Yicai Global) Oct. 11 -- Hengdian Entertainment Co. [SHA:603103], or HG Entertainment, will list on the Shanghai Stock Exchange tomorrow, with net proceeds of the floatation reaching CNY772 million (USD116.9 million).

The firm plans to issue 53 million shares at CNY15.45 (USD2.35). Some 10 percent of the shares will be issued offline and the remainder online, according to information posted by the company on the stock exchange's website.

The funds raised will be used in the company's core business, with CNY637 million going toward cinema construction. As of June 30 this year, the firm had 310 cinemas in operation.

HG Entertainment has plans to build 220 cinemas in over 200 cities nationwide between 2016 and 2019, and expects to spend about CNY2.363 billion (USD358 million). Once construction is finished, the new cinemas will cover more than 600,000 square meters and house over 190,000 seats and more than 1,300 screens, Sina Tech reported.

From January through June this year, HG ranked eighth in box office takings among cinemas nationwide, and third among China's film investment firms. As of Sept. 30, its operating income had passed CNY1.937 billion (USD293.4 million), up 8 percent over the same period last year. Net profit had dipped 7.7 percent to CNY305 million (USD46.21 million).