Homegrown film producer and distributor Mm2 Entertainment has launched an initial public offering on the Singapore Stock Exchange.
Headed by former veteran TV executive, Melvin Ang, the company has been involved with films including 'Ah Boys to Men', 'That Girl in Pinafore' and 'We Not Naughty'.
The company is selling 37.4 million shares at S$0.25 apiece through a placing. The shares represent a mix of existing and new stock, and account for 19 per cent of the enlarged capital base.
Shares, listed as Mm2 Asia, began trading on 9 December on Catalist, the second tier of the Singapore Stock Exchange.
Following the sale, Ang will continue to own 63 per cent of the company, with Philip Asia Pacific Opportunity Fund the next biggest with 8.6 per cent.
At the placing price, the company will be valued at S$51.8 million. That is a big multiple of its 2013-14 net earnings, which are reported as S$2.7 million.
Sale proceeds of S$5.7 million are expected to be applied to expanding the business beyond its base in Singapore and Malaysia, and to the production of bigger-budget movies.
The company was founded in 2008 and now has three activities: film production, distribution in Singapore and Malaysia, and sponsorship.
To date, most of its production and finance has been localised in Singapore and Malaysia.
The company has, however, been involved in productions in China ('I Want You') and in Taiwan ('Kiasu'). It also handled the release of Taiwanese drama 'Cafe Waiting Love' in Malaysia.
The company says it has a slate of 10 films in various stages of development and production. Four will be released before the end of its financial year (March 2015):
- 'Wayang Boy', a comedy about Singaporeans adjusting to the influx of foreign immigrants
- 'Ah Boys to Men 3 - Frogmen', the third instalment of Jack Neo's blockbuster franchise
- 'ATM', its first Hong Kong comedy which explores the generation gap between youth and seniors
- 'Bring Back the Dead', in which a grieving mother resorts to supernatural forces to bring back the soul of her dead son.