Shares of S. Korean film group up 54% in S'pore debut
A SOUTH Korean film production group - whose hits include action thriller Snowpiercer - saw its shares jump 54 per cent on its debut on the Singapore stock market yesterday.
Spackman Entertainment Group began trading on Catalist, Singapore's small-cap exchange, after raising S$18 million from a placement of 69.4 million shares.
English-language film Snowpiercer - which features Hollywood stars Chris Evans and Tilda Swinton, as well as South Korea's Song Kang Ho - broke South Korean box-office records when it was released last year.
The English-language movie was South Korea's No. 2 film last year, in terms of box-office ticket admissions. The film has grossed about US$84 million (S$104 million) worldwide, according to Box Office Mojo.
The company will use the proceeds of the initial public offering (IPO) to expand operations, including setting up offices in Singapore and Los Angeles, and to buy other production firms.
"The Singapore market is more receptive to a smaller-cap company like us, and Korean entertainment content is hugely popular here," said Charles Spackman, executive chairman of Spackman Entertainment Group.
The Seoul-based group bought two South Korean production subsidiaries, Zip Cinema and Opus Pictures, in 2012. It has since produced six films.
"International sales have not been that big historically, but that's one of the main growth areas going forward," Mr Spackman said. "The United States is obviously in our sights. So is China."
Last year, the company made a net profit of US$2.79 million.
More than half of the placement shares have been taken up by institutional investors, including Havenport Asset Management, Atlantis Investment Management, JF Asset Management and Aegis Portfolios Manager. Canada-based Spackman Equities Group remains the controlling shareholder, with 39.1 per cent of the company.
The film production firm closed trading at 46.5 cents, up 79 per cent from the IPO price of 26 cents. It was the second most actively traded stock across the entire Singapore market in terms of volume.
PrimePartners acted as sponsor for the listing.