Youhug Media's share sale could raise at least US$100m.
Bloomberg reports that Chinese TV drama studio Shanghai Youhug Media Co., is planning a Hong Kong IPO as soon as 2019 in a listing could raise at least US$100m.
The production company’s IPO comes at a time the Chinese government is cracking down on cultural output with regulators seeking to cap actor salaries following a high-profile probe into tax evasion. It earlier delisted from a domestic over-the-counter market, New Third Board, in April 2017.
Entertainment and broadcasting companies listed in Hong Kong have fallen an average 39% over 2018 compared with an 18% decline in the benchmark Hang Seng Index, data compiled by Bloomberg show.
The local stock market entered bear territory in September 2018 with the HSI down more than 20% from its January peak as mounting trade tensions, emerging market-sell off and China’s ongoing deleveraging hit investor sentiment hard.
Roughly 75% of Hong Kong IPOs in 2018 are trading below their offer prices, pushing some investors to hold back capital injection, Bloomberg reported in 2018.
Here’s more from Bloomberg:
Do you know more about this story? Contact us anonymously through this link.