Chinese movie ticketing firm Maoyan has seen its stock slump by 1.1 per cent this morning in its Initial Public Offering (IPO) debut in Hong Kong.
The company, which is backed by Beijing Enlight Media and Tencent Holdings, was formed in September 2017 through the merger of rival ticketing platforms Maoyan and Beijing Weiying Technology. It filed for the initial public offering in September last year.
However, Maoyan’s shares fell by as much as 5.4 per cent this morning (Monday), with its shares at the bottom of its IPO target. It raised about $250m (£191.5m/€218m), which is much less than the previous target of $1bn.
Ke Yan, co-head of research at Aequitas Research, said, according to Reuters: “While on one hand there’s a lack of demand for the name given the limited upside in the online movie ticketing market in terms of market penetration, on the other hand, the upcoming Chinese holiday season could be another contributing factor for the thin volume and the poor performance.”
Maoyan accounts for almost 60 per cent of the online movie ticketing market in China, according to data from Chinese analytics company iResearch cited in the company’s IPO prospectus.