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Spackman Entertainment Group launches IPO
BY
PATRICK JOHN LIM
PUBLISHED: 11:14 PM, JULY 11, 2014
SINGAPORE – Singapore investors will soon have easier access to the Korean film and entertainment industries.
Korean film production company Spackman Entertainment Group has launched its initial public offering (IPO) for a listing on the Catalist board, making it the first Korean entertainment company to be listed in Singapore.
Under the IPO, Spackman is offering 69.44 million shares at 26 cents each. They comprise 50 million new shares and 19.4 million vendor shares.
Spackman is aiming to raise about S$10.8 million in net proceeds. It plans to use the new funds to invest in film production and expansion activities.
Trading in the shares is expected to begin on July 22.
Channel NewsAsia
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A movie budget is average 20m. What can they do with 10m? Looking at their amount raised too. 0.26 x 50m new shares to raise 10.8m. Listing fees almost cost 20% of capital raised, I wonder why they even want to consider to list? Is it do tough to obtain 10m of private financing?
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There was one article on the company, in the latest The Edge. It gave an overview of entertainment business model.
I am new to entertainment business, and not sure the right valuation model. I assume it is the same as technology stock, which relies on "future catalyst" more than "current earning". The article confirmed the assumption, with similar view from the company management.
With the current price of 49 cents, the historical PE is more than 57. I am already scare to death on PE more than 30, let alone close to 60...
(not vested)
“夏则资皮，冬则资纱，旱则资船，水则资车” - 范蠡
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If I am not wrong, the lifespan of film production companies throughout the world is quite short. Even mgm with !james bond franchise filed for bankruptcy before.
I agree, their motivations for ipo is really unclear. They need to pay listing fees and theyhad taken a very small raising of capital.
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There are a lot of under-table exorbitant deals and structures for entertainment business. Personally I wouldn't be involved. Those few listed ones already tells you the story. Can't say we are uninformed.
Before you speak, listen. Before you write, think. Before you spend, earn. Before you invest, investigate. Before you criticize, wait. Before you pray, forgive. Before you quit, try. Before you retire, save. Before you die, give. –William A. Ward
Think Asset-Business-Structure (ABS)
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Movie business are always unpredictable, and I feel that the commentary is full of mitigating factors to mask their poor performance.
never felt any compeling factors to invest in this company.
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(14-11-2014, 11:29 PM)idyllic_yawster Wrote: Movie business are always unpredictable, and I feel that the commentary is full of mitigating factors to mask their poor performance.
never felt any compeling factors to invest in this company.
Like they said in showbiz, you are as good as your last hit.
"... but quitting while you're ahead is not the same as quitting." - Quote from the movie American Gangster
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