PE-backed Wanda Cinema seeks for $326m in A-share IPO

Wanda filed its preliminary prospectus in April and planned to sell up to 60 million shares. Existing shareholders are allowed to sell as many as 30 million shares through the offering, according to a filing.

Wanda Cinema Line was founded in 2005 and is controlled by commercial property conglomerate Dalian Wanda Group, owned by Chinese tycoon Jianlin Wang. As of July, the company had 149 cinemas with 1,247 screens, accounting for 15% of total box office sales in China.

At least 10 renminbi-denominated private equity funds had invested in Wanda Cinema since 2010, including Tsinghua Holding Capital, an investment arm of Tsinghua University, and Sequoia Capital. None of them holds more than 5% of the company.

Wanda Cinema's net profit rose 55% to RMB603 million in 2013 from RMB388 million in 2012, while revenue increased to RMB4.02 million from RMB3.03 billion. The IPO proceeds will be used to fund the opening of new cinemas and supplement working capital.

Aside from its cinema chain in China, Dalian Wanda Group acquired AMC Entertainment Holding in the US for $2.6 billion in 2012. AMC went public in the US last year, raising about $332 million.

Bank of China International is the sole bookrunner for Wanda Cinema's share sale.

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• Topics
• Greater China
• Consumer
• Renminbi fund
• Exits
• China
• IPO
• Consumer
• Renminbi
• Sequoia Capital
• Exit