Shanghai Film, which distributes movies and operates cinemas in China, climbed to 14.67 yuan in early trading on Wednesday in Shanghai, compared with its initial public offering price of 10.19 yuan. That gave the company, which is controlled by the Shanghai municipal government, a market value of 5.5 billion yuan ($827 million).
The stock is the latest example underscoring the popularity of new-share listings in China, which have averaged returns of more than 400 percent during their first month of trading. China Film, the nation’s largest distributor of movies, has more than doubled after rising by the daily limit every day since it began trading last week.
Shanghai Film’s listing comes as the country is expected to overtake the U.S. as the world’s largest box office next year. Movie ticket sales in the world’s second-largest economy are expected to grow 22 percent to $8.6 billion this year, according to the average predictions at IHS Markit Ltd. and PricewaterhouseCoopers LLP.
Source: Bloomberg News