Tencent-backed Hollywood studio STX Entertainment eyes Hong Kong IPO
Studio, whose investors also include PCCW and Hony Capital, says Hong Kong is its No 1 choice for a listing
STX Entertainment, a Hollywood start-up studio backed by Chinese investors, is eyeing an initial public offering in Hong Kong as it aims to become a bridge between the US and China, the world’s biggest movie markets.
Chairman and CEO Robert Simonds told the Post that STX is finalising plans to set up a Hong Kong office, and the city is its favoured option for a listing venue.
He did not disclose the fundraising target and timeline for the offering, but said there is unlikely to be another round of financing activity before going public. In the last round of fundraising, in August, Chinese technology giant Tencent and Hong Kong telecoms company PCCW bought equity stakes in the Los Angeles-based studio, joining existing investors including Hony Capital, the private equity arm of Legend Holdings.
“The business itself is sustaining, and the last round of financing gave us the capital we needed to expand all the other businesses besides movies,” Simonds said.
John Zhao, chief executive officer of Hony Capital, said the market value of STX had jumped six to seven times since Hony invested two years ago.
Founded in 2014 by Hollywood veterans Simonds and Bill McGlashan, STX has released films including the summer hit “Bad Moms” and the 2015 thriller “The Gift”.
