Singapore-based mini-conglomerate GHY Culture Media made its debut on the local stock exchange on Friday. In early trading its shares traded up by more than 6%.
The company was founded and remains headed by screenwriter and producer Guo Jingyu and has significant mainland Chinese connections. These have seen the company involved in several TV drama series, including “The Little Nyonya” that are intended for mainland consumption.
The company sold 21.7 million shares at S$0.66 apiece in a public sale to institutions and the public, and a larger tranche through a placing to cornerstone investors. These include Chinese streaming platform iQIYI and Ron Sim, head of the OSIM massage chair group. The two offerings provide the company with gross proceeds of $$121 million and leave Guo as the largest shareholder with a 59% holding. At the IPO price the company was valued at $$709 million ($534 million).
GHY says that it will use the proceeds for expansion of all three branches of operation TV and film production, and concert production and promotion. It aims to invest in productions, acquisitions, joint ventures and strategic alliances.
It currently produces in Singapore, Malaysia and China. It also has concerts in Singapore, Malaysia and Australia. It has smaller operations in talent management, mostly in China, and costumes, props and makeup services in China and Singapore.
“With our expansion plans and exciting projects in the pipeline, we are well-positioned to capture new opportunities in the media and entertainment industry and establish ourselves as the choice entertainment group in the region,” Guo said.