The Wall Street Journal has seen the term sheet for Poly Culture Group’s upcoming Hong Kong IPO. The company was created by the Chinese Army and has since expanded into managing “performing-arts theaters, cinema, movie and television production and an art gallery” as well as building the world’s third largest auction house (if the numbers can be trusted.) The IPO is for the entire Culture group but the Journal does not breakout the revenues for comparison:
The state-owned auction house, which started taking orders from investors Thursday, is selling 77.8 million shares in an indicative price range of HK$28.20-HK$33.00 $3.64-$4.26 each, the term sheet showed.
The price range represents 14.5 times-17 times forecasted earnings for 2014, a personal familiar with the situation said Thursday. Hong Kong’s benchmark Hang Seng Index is trading at 9.95 times. […]
The company’s profit in the first 10 months of last year totaled 308.2 million yuan US$51 million, down 2.7% from a year earlier, according to the prospectus.
The company will price the deal on Feb. 28 and is scheduled to begin trading on the Hong Kong stock exchange March 6.
Chinese Auction House Plans IPO (WSJ)
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