Bona officially opens its IPO film and television sector or will reshuffle

It is unclear whether Bona will get a share of A shares when he returns. What is certain is that once Bona is successfully listed, the film and television sector listed companies are afraid to re-rank.

Original title: Bona Films returns to "go against the market" and reshuffle the film and television industry.

At the end of 2010, when Yu Dong, president of Bona Films, stood on the Nasdaq Stock Exchange in New York, he was in the limelight. I'm afraid he was at that time It was hard for him to believe that when looking back again, the country was in a state of chaos.

On the evening of May 3, Bona Pictures disclosed that the company had recently submitted the guidance filing materials for initial public offering and listing to the Xinjiang Securities Regulatory Bureau, and on May 2 received the Xinjiang Securities Regulatory Bureau's confirmation letter on the application materials for listing guidance from Bona Pictures Group Co., Ltd. Bona Films is currently receiving tutoring from CITIC Securities, and the company has entered the tutoring stage of initial public offering and listing. This also means that Bona officially launched an IPO.

Prior to this, Yu Dong had publicly stated many times that Bona's market value was not as good as that of its peers."At the peak, the market value difference between us and Huayi was 13 times, and few domestic investors paid attention to Bona."

In 2015, the Shanghai Composite Index continued to rise, and the GEM was a myth of wealth creation. Yu Dong couldn't help but announce privatization. However, what surprised him was that the bull market bubble burst, and the GEM entered a period of shock in the following two years. As of April 27, Huayi Brothers had a market value of 23 billion yuan, but Huayi's total market value at the end of 2015 was still 59.8 billion yuan. In less than two years, the market value had shrunk by more than 60%.

Against this background, it is unclear whether Bona will get a share of A shares when he returns. What is certain is that once Bona is successfully listed, the film and television sector listed companies are afraid to re-rank.

The stock price of the film and television industry has fallen, but Bona Films has to go

back. Back around 2008, Bona Films was second to none in the film and television industry in China, neck and neck with Huayi Brothers. Yu Dong said that at that time, domestic financing channels were limited, and only investment institutions holding US dollar funds were active. Sequoia Capital chose Bona after inspecting a number of private companies including Bona and Huayi. It was precisely because of accepting investment from Sequoia Capital Shen Nanpeng that Bona Films deployed a red-chip institution and rushed to the United States to go public. However, Huayi Brothers, who lost the election, were favored by Ma Yun and stayed on the domestic GEM.

The gap between the fledgling China GEM and the Nasdaq in the United States is naturally different, but in terms of market value growth, the former's constant realization of the myth of wealth creation is even more shocking. On both sides of the ocean, the market value gap between the two film and television companies has rapidly widened.

It was not until the end of 2015 that Bona Films announced that the company's privatization agreement had been reached. At that time, Bona's market value was already several streets behind Huayi Brothers and Enlight Media. According to statistics, before the delisting, Bona's market value has been hovering between US$600 million and US$700 million. (About RMB 4 billion), the market value of Huayi Brothers was about 60 billion yuan during the same period, while the market value of Light Media also remained at about 49 billion yuan. Yu Dong once publicly choked: "If I had met Ma Yun at that time, the one who would go to the United States now would be Wang Zhongjun."

Subsequently, Bona began to seek to return to A-shares. Unfortunately, during this period, the stock price of the media sector continued to decline. Wind data shows that according to CITIC's industry classification, at the end of 2015, when Bona's privatization was completed, the media sector index was 7071. Today, the media sector index has dropped to 3948, an overall decline of 44%.

Among them, the film and television industry is the hardest hit by the stock price decline. Since the end of 2015, Huayi Brothers 'share price has dropped from 20.68 yuan/share to 8.43 yuan/share, with the market value shrinking by 58%; Enlight Media's share price has dropped from 15.09 yuan/share to 8.47 yuan/share, with the market value shrinking by 43. Some industry insiders lamented that Bona did not catch the "good times".

Can private film and television pass the conference smoothly after the market value soared after Series A financing?

In fact, in the past two years, Yu Dong has already planned out Bona's capital blueprint and completed a series of actions such as privatization, Nasdaq delisting, and dismantling the vie structure.

It must be emphasized that before Bona's delisting, the equity ratio changed a lot. At the end of 2015, when Bona completed its privatization, Fosun International, the former second largest shareholder, and Sequoia Capital, the third largest shareholder, gradually faded out. Its shareholding ratios with Tencent and Alibaba Pictures were 6.2%, 5%-6%, 7% and 10% respectively, while Yu Dong held 44.3% of the company's shares, firmly holding the controlling stake in the company in his hands.

In December 2016, Bona completed a Series A financing of RMB 2.5 billion. This round of financing was led by Alibaba Pictures and Tencent, and participated by CITIC Securities Jinshi Fund, Industrial and Commercial Bank of China and other institutions. The company's current valuation has exceeded 15 billion yuan. As for the specific equity distribution ratio, Bona is unwilling to disclose it. What is certain is that Yu Dong's actual controller position is very solid.

On the other hand, industry insiders believe that Bo's inclusion in the bureau may have an impact on existing listed companies in the film and television industry."Each company will be re-ranked." In fact, in terms of income, Bona can be shortlisted in the top three film and television companies.

Last year, Yu Dong said in an interview that in 2016, Bona will achieve a net profit of 400 million yuan to 500 million yuan, a year-on-year increase of 150%. This achievement can rank among the top five in the film and television industry.

Editor: Nancy