China’s Wanda Cinema Line Co. Denied Shenzhen Stock Exchange Listing

Posted by: : Paul EbelingPosted on: July 3, 2014 China's Wanda Cinema Line Co. Denied  Shenzhen Stock Exchange Listing

China’s Wanda Cinema Line Co. Denied  Shenzhen Stock Exchange Listing

AMC

China’s biggest cinema chain, Wanda Cinema Line Co., has been denied approval by state regulators to raise US $320-M in a Shenzhen stock exchange listing, after failing to provide sufficient documents for an IPO (initial public offering).

Wanda Cinema Lines’ application for an IPO by issuing 60-M/shares was suspended because of insufficient documentation, according to the Securities Times, which is the only official newspaper authorized by the China Securities Regulatory Commission to release news on Chinese listed companies.

Dalian Wanda Group, headed by Chinese tycoon Wang Jianlin, is the world largest owner and operator of movie theaters.

In Y 2012, the company bought North America’s 2nd biggest theater chain, AMC Entertainment (NYSE:AMC),for $2.6-B.

The China Securities Regulatory Commission had accepted 637 applications for listing by 1 July, 40 were approved and 597 not approved, the report said.  Wanda Cinema Line and Wanda’s commercial property unit were among the companies which were not given approval, the report said.

According to the IPO prospectus, Wanda Cinema is 68% owned by Wanda Investment, in which Wang owns 98%. The other 2% are owned by his oldest son Wang Sicong.

Other Chinese films companies, including China Film Group (CFG), and Shanghai Film Co., are also planning IPOs.

Wanda Cinema Line’s revenue rose to $645-M in Y 2013 from $484-M in Y 2012. Its profit climbed to $97-M, compared with $62.6-M in Y 2012.

In a statement Wanda Group said: “Thanks for the attention of the supervision department, our shareholders and the public in the last 4 yrs of preparation for going public. We will continue to actively explore multiple ways of listing.”

Wang Jianlin has previously said that he was not worried as to where his company units made their listings.

“As long as we make profits, we can go public anywhere and on any platform. If Mainland China does not allow us to go public, then we can pack up our capital and go public in Hong Kong. “We have all sorts of platforms,” he said.

Wang also said Wanda will not wait for too long to go public, no matter how and where they do it.

At the end of Y 2013, Wanda Cinema owned 142 movie cinemas in 72 cities in China. It has continued to expand.

Forbes Magazine estimated Wang’s net worth at $15.1-B on its 2014 Billionaires List.

In Y 2012, Wanda acquired AMC Entertainment, and at the time, many saw the acquisition as a “prestige buy” on the part of Wang who had expressed interest in expanding his business internationally, it proved to be a windfall.

Thanks to a record year for Hollywood films in Y 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.

HeffX-LTN Analysis for AMC: Overall Short Intermediate Long
Bullish (0.34) Bullish (0.29) Bullish (0.42) Bullish (0.32)

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Paul Ebeling

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Paul Ebeling

Pattern Recognition Analyst, equities, commodities, forex
Paul Ebeling is best known for his work as writer and publisher of “The Red Roadmaster’s Technical Report” on the US Major Market Indices™, a highly-regarded, weekly financial market letter, where he enjoys an international audience among opinion makers, business leaders, and respected organizations. Something of a pioneer in online stock market and commodities discussion and analysis, Ebeling has been online since 1994. He has studied and worked in the global financial and stock markets since 1984.
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