The upcoming Hong Kong IPO of Imax Corp.’s Chinese operation will help the company recognize the value of that country’s market, an analyst wrote Thursday. Imax on Wednesday priced Imax China shares, which are set to list on the Hong Kong Exchange Oct. 8, at 31 Hong Kong dollars (US$4). “With Imax China being priced at a 35% discount to its closest [competitor], Wanda Cinema, we view this as a smart move by management given market conditions and believe the valuations of Imax China will eventually reflect the strength of both China’s box office as well as Imax’s business model/operating leverage,” wrote B. Riley & Co. analyst Eric Wold. The Chinese box office, in 2014, saw a 34% increase over the previous year. Shares of Imax Corp. are up more than 9% in the year, while the S&P has dropped nearly 7%. Imax China is raising $248 million in the IPO.
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