Shanghai---Shares in a cinema firm owned by Chinese tycoon Wang Jianlin, who this week bought a 20 percent stake of Spanish football club Atletico Madrid, surged 44 percent on their trading debut Thursday.
Wanda Cinema, part of Wang's private conglomerate Wanda Group, raised 1.28 billion yuan ($210 million) by issuing 60 million new shares, or 10.71 percent of its enlarged share capital, exchange filings showed, as investors bet on strong growth in film viewers.
The parent group bought US cinema chain AMC Entertainment Holdings in 2012 and has moved to branch out into film production and theme parks.
On its first day of trading on China's Shenzhen Stock Exchange, Wanda Cinema shares rose by the maximum allowed for new listings to close at 30.74 yuan, valuing the company as a whole at more than 17 billion yuan.
Wanda Cinema had 150 cinemas with 1,315 screens in more than 80 cities across China as of mid-2014 and it plans to expand its network to 260 cinemas with 2,300 screens by 2016, according to the firm.
Wanda founder Wang has a net worth of $24.6 billion as of Tuesday, making him China's second richest person and 29th globally, according to Bloomberg Billionaires.
Wang said Wednesday he would buy a 20 percent stake in the reigning Spanish football champions for 45 million euros ($52 million).
Another of his companies, shopping mall developer Dalian Wanda, listed in Hong Kong in December.
Wanda Cinema said it will use the listing proceeds to fund new cinema projects and replenish working capital as China's film viewership surges.
China's box office revenue jumped 36 percent year-on-year to $4.7 billion in 2014, according to entertainment industry consultancy EntGroup Inc.
The country ranked as the world's second largest film market last year with a global market share of 13 percent, EntGroup said, behind only the United States with 27 percent.
AFP
