STX Entertainment Eyeing Hong Kong IPO (Report)

The Hollywood Reporter

Film and TV studio STX Entertainment is eyeing an initial public offering in Hong Kong, the South China Morning Post reported on Monday.

Chairman and CEO Robert Simonds said that STX is finalizing plans to open an office in the city and that Hong Kong is the company's favored location for a possible stock market listing, the newspaper said.

It said he did not share the possible size of the IPO and the potential timeline. In STX's most recent fundraising round in August, Chinese technology giant Tencent and Hong Kong telecom firm PCCW took stakes in the L.A.-based studio. Previous  investors include Chinese private equity firm Hony Capital.

"The business itself is sustaining, and the last round of financing gave us the capital we needed to expand all the other businesses besides movies," the South China Morning Post cited Simonds as saying.

STX was founded in 2014 by Simonds and Bill McGlashan. Its 2016 theatrical releases have included Bad Moms.

STX last year also struck a landmark deal with Chinese film company Huayi Brothers. The co-financing and distribution agreement marked one of the first major investments by a Chinese company in a Hollywood studio film slate.

Read more: STX's Bob Simonds: Huayi Brothers Deal Will "Supercharge" Film Financing Facilities