- CNTV English - CCTV News

Homepage > News > Biz >

Enlight rises more than 40% in IPO

08-04-2011 14:51 BJT

BEIJING - Shares in Beijing Enlight Media Co Ltd, a private media company, surged more than 40 percent from the offering price of 52.5 yuan ($8.16) on its stock market debut on Wednesday, in what analysts said was a sign of things to come as many entertainment and media companies go public.

The shares closed at 74 yuan, against an opening price of 70.88 yuan, in an initial public offering (IPO) on the Growth Enterprises Market, China's Nasdaq-style market.

Huayi Brothers Media Corp, television program producer Zhejiang Huace Film & TV Co Ltd and distributor Bona Film Group, all major players in the entertainment market, have held domestic and overseas IPOs since 2009.

As the country's media and entertainment industries keep growing, more companies in this sector will turn to the equity markets to raise funds, for expansion, said analysts.

According to a report by PricewaterhouseCoopers, China is expected to overtake Germany this year as the world's third-largest entertainment and media market with total revenues of $96 billion.

Chen Shaofeng, vice-dean of the Institute for Cultural Industries at Peking University, forecast that some 120 to 150 companies in the sector might go public from this year to 2015, boosted by the development of the cultural industry in recent years.

Movie makers, such as China Film Group Corp, and cinema operators, including Wanda Cinemas, have said that they are preparing for IPOs.

Wang Changtian, president of Enlight Media, said the company will mainly use IPO proceeds to improve the content of its TV programs and expand its distribution network. He said the company has no plans to build or operate cinemas itself, but it doesn't exclude the possibility of investing in or acquiring theater chains.

In the next three years, Enlight Media plans to produce three to five movies a year with its investment and distribute 10 to 20 domestic films, so as to maintain its No 3 position in the film industry.

China's advertising market continues to grow rapidly, which is good news for companies that generate revenue from advertising, such as Enlight Media, said Sun Jin, an analyst with China Galaxy Securities Co Ltd.

Revenues for traditional advertising, which excludes the Internet, reached 584.76 billion yuan last year, with 77 percent going to television, according to Charm Communications Inc, a leading advertising agency.


Editor:Yang Jie |Source: China Daily

Hot Videos view more

The celebrations are still continuing as the victorious coach, Joachim Loew, has been honored for his achievement in his hometown of Freiburg.
Germany coach Loew honored in hometown of Freiburg

Chinese men´s national team continued its preparations for next year´s Asian Cup, as they managed a one-all draw against visitors Jordan during a football friendly in Harbin, the capital city of Northeast China´s Heilongjiang Province.
China held to 1-1 draw by Jordan

The defending world champs came into the contest with a perfect 6-and-oh record, but they would be in for a tough first half before opening things up in the second.
USA beat Slovenia 119-76 in quarter-finals

Hot Stories more

UK authorities believe killer of James Foley is a British national

Across the UK the hunt is on for James Foley’s killer, who authorities believe is a British national. As Richard Bestic reports from London, Prime Minister David Cameron cut short his summer break to lead his government’s response.

Israeli war jets renews Gaza strike as truce talks stalled

Three Palestinians were killed and 40 others wounded in the intensive Israeli war jets´ airstrikes on the Gaza city on Tuesday night, shortly before an end of a 24-hour ceasefire in the Gaza Strip,

Missouri police arrest dozens after violent night

As the protests in the town of Ferguson, Missouri turned violent with police facing ´heavy gunfire´ from some ´criminal elements´, cops fired tear gas, stun grenades and arrested 31 demonstrators on Monday night.

Picture in news more

More Video News

Choose TV Program