Chinese movie studio Bona Film gets US$1.5 billion valuation in Shenzhen debut, six years after leaving Nasdaq
- Stock surged by the maximum 44 per cent in its main board listing debut in Shenzhen, following its 1.38 billion yuan IPO
- Founder Yu Dong took the firm private in 2016, ending its six-year stay on the Nasdaq in New York
The stock opened at 6.04 yuan and closed at the upper limit of 7.24 yuan on Thursday, giving it a market capitalisation of just under 10 billion yuan (US$1.5 billion). The Beijing-based company raised 1.38 billion yuan from the sale of 274.9 million shares at 5.03 yuan each.
The listing completed an effort by chairman and founder Yu Dong, who took the filmmaker private in 2016 in a deal valuing the firm at US$1 billion, after the stock tumbled by one-fifth since its US listing. Bona Film became the first Chinese movie studio to trade on Nasdaq in 2010.
“In April 2016, I officially bid farewell to Nasdaq, embarking on the road to return to A shares,” Yu said in an August 15 statement published on the company’s website preceding the debut. “We have walked for [nearly] seven years and it has been gruelling.”
Chinese companies including chip maker SMIC, China Telecom and China Mobile have relisted in Shanghai and Shenzhen after leaving the US markets. More state-controlled giants could do the same under pressure from US trade sanctions and accounting spat, after recent voluntary separation plans.
Wealth manager Noah Holdings and information services provider Zhihu relisted in Hong Kong this year.
Bona Film’s revenue surged 82 per cent to 1.47 billion yuan in the first half from the same period a year earlier, according to its stock-offering prospectus. Earnings jumped 517 per cent to 309.8 million yuan.
The studio has grown rapidly by scoring a handful of hits, especially with patriotic films that resonated with moviegoers amid rising geopolitical tensions. China’s top-grossing film of all time The Battle at Lake Changjin and its sequel have generated 8.7 billion yuan in box-office receipts.
Yu controls a 20.5 per cent stake in the group. Alibaba Group Holding and Tencent Holdings, through their movie and investment units, are listed among its top 10 shareholders in the prospectus. Alibaba is the owner of the South China Morning Post.
