China’s Maoyan Tweaks Terms for $350 Million IPO

January 22, 2019 2:30AM PT

Maoyan Entertainment, the Chinese ticketing giant, has updated the terms of its share offer in order to keep its IPO on course. It aims to raise up to $350 million of new cash by floating on the Hong Kong stock market.

In a new draft prospectus published Tuesday, the company revealed that it had brought IMAX China and Chinese phones giant Xiaomi on board, among five additional cornerstone investors. Others are finance firms: Hylink Investment, Prestige of the Sun, and Welight Capital. Only IMAX appeared in the previous draft published on Friday.

The value of the new investments is understood to be small – around $30 million according to local financial media sources – and remain redacted in the latest draft. But they bolster what may be a tricky sales pitch.

According to a term sheet seen by financial media, Maoyan has also pushed expanded by a few days the period it needs to sell the shares to investors. And it has delayed the planned start of trading from Jan. 31 to Feb. 4.

The South China Morning Post reports that “Maoyan plans to sell 132 million shares, raising up to HK$2.7 billion (US$350 million),” if the shares are sold at the top of the indicated price range. “The shares are being offered at an indicated range of HK$14.8 to HK$20.4 per share,” it said.

Maoyan has major backers that include Enlight Media, games and social media giant Tencent, and recently listed tech group Meituan Dianping. It claims over 130 million monthly active users and a 60% share of the movie ticketing market in China, but has yet to turn a profit.