Chinese real estate conglomerate Dalian Wanda Group is preparing an IPO for its cinema chain business on the Shenzhen Stock Exchange.
According to a filing made public by the China Securities Regulatory Commission, the company, headed by Chinese billionaire Wang Jianlin, plans to sell up to 60 million shares to raise a target $325 million (2 billion yuan).
Dalian Wanda Group is the world largest owner and operator of movie theaters. In 2012, in an eye-popping deal, the company bought North America's second biggest theater Chain, AMC Entertainment for $2.6 billion. At the time, many viewed the acquisition as a prestige buy on the part of Wang, who had expressed interest in expanding his business internationally, but it's proved to be a windfall. Thanks to a record year for Hollywood films in 2013 and an overall rising stock market during the period, Wang saw the value of his controlling stake in AMC more than double in the 18 months after the purchase.
Wanda Cinema Line's revenue rose to $645 million in 2013, meanwhile, from $484 million the year prior. Net profit climbed to $97 million, over 2012’s $62.6 million.
According to the prospectus, Wanda Cinema is 68 percent owned by Wanda Investment, which is 98 percent held by Wang and 2 percent owned by his oldest son Wang Sicong.
At the end of 2013, Wanda Cinema owned 142 movie cinemas in 72 cities in China -- and further expansion is ongoing.
Forbes estimated Wang's net worth at $15.1 billion for its 2014 billionaires list.