G.H.Y Culture & Media's IPO shares priced at S$0.66

G.H.Y Culture & Media executive chairman and group CEO Guo Jingyu. PHOTO: LIANHE WANBAO

SINGAPORE (THE BUSINESS TIMES) - Entertainment and content provider G.H.Y Culture & Media Holding Co on Friday (Dec 11) lodged its final prospectus, offering around 21.7 million shares at S$0.66 each for placement in its initial public offering (IPO).

The shares, to be listed on the mainboard, comprise around 18.7 million placement shares and three million shares under the Singapore public offer.

Based on its placement price and enlarged post-IPO share capital of 1.07 billion shares, G.H.Y's market capitalisation will be about S$708.7 million post-placement. The public offer opens at 9pm on Dec 11 and will close at noon on Dec 16. G.H.Y expects to commence trading on Dec 18.

Cornerstone investors have also entered into agreements with the company to subscribe for and purchase around 162.7 million cornerstone shares, of which 141.2 million will be new shares issued by the company while 21.5 million shares are vendor shares belonging to investment holding company Taiho Holding and group adviser John Ho.

The cornerstone investors in the IPO are Epical Entertainment, Hong Kong Chixin Investment, consultancy company ICH Capital, entertainment service provider iQIYI International Singapore, King Kong Media Production, OSIM International founder Ron Sim, Songful Global Investment, Qilin Asset Management, brand developer V3 Brands and investment holding company Yinson Capital.

The IPO and issuance of new cornerstone shares will deliver about S$115.1 million in net proceeds, of which S$101 million will be due to the company.

Proceeds will be used to invest in production, acquisitions, joint ventures and strategic alliances to expand its TV programme and film production, as well as concert production business segments.

G.H.Y's core business is in the production and promotion of dramas, films and concerts in the Asia-Pacific region. It also engages in talent management and costumes, props and makeup services.

For the first half of 2020, G.H.Y's net profit stood at S$13.1 million, up from S$11.8 million a year ago, prior to the introduction of the group's concert production and costumes, props and makeup services.

In FY2019, it posted a net profit of S$12.4 million; in the financial period between March 22 and Dec 31, 2018, it had a net loss of S$1.3 million.

Revenue for the first six months of 2020, FY2019 and that of the financial period in 2018 came in at S$37.2 million, S$66 million, and S$3.4 million respectively.

The group does not have a fixed dividend policy, but intends to recommend dividends of at least 30 per cent of its net profit after tax for FY2020 (excluding the S$10 million in dividends declared by the board in FY2020) and FY2021.

DBS, UOB Kay Hian and Bank of China, Singapore are the joint underwriters and book runners of the IPO.

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