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Digital Hollywood to list in Hong Kong
Posted on Wednesday, 06 December 2017 01:17
Digital Hollywood Interactive is raising up to HKD 425.00 million (USD 54.37 million) via an initial public offering (IPO) on the Hong Kong Stock Exchange (HKEX).
Under the terms, the online game developer is issuing 500.00 million new shares, which account for 25.0 per cent of its enlarged capital.
The IPO prospectus indicated that the offer price will range between HKD 0.63 and HKD 0.85 per share.
Digital Hollywood, which is expected to list on or about 15th December 2017, has appointed China Securities, CSC Securities, China Galaxy International and GF Securities, among other advisors, to manage the transaction.
As of last year, the firm accounted for 8.9 per cent of total revenue earned by all Chinese game developers in the global market, according to market consultant Analysys.
It has so far launched 26 mobile games and had about 47.80 million cumulative registered users, as of 30th June 2017, in more than 168 countries and regions based on their recorded IP addresses.
Digital Hollywood posted revenue of USD 13.83 million in the six months ended 30th June 2017, down 5.7 per cent on the USD 14.66 million in the previous year.
Net profit for the period totalled HKD 2.27 million, compared to HKD 2.45 million in H1 2016.
Digital Hollywood has earmarked most of the IPO proceeds for its expansion plans, which include the acquisition of new content from other game providers, further game development efforts and network infrastructure upgrades.
The remaining amount will be used for working capital and other corporate expenses.
According to Zephyr, the M&A database published by Bureau van Dijk, there have been 44 IPOs completed on the HKEX since the beginning of this year.
The largest of these was the HKD 11.90 billion listing of travel and casualty insurance provider Zhongan Online P&C Insurance.
© Zephus Ltd