East China’s Nanjing-headquartered drama series producer and distributor Strawbear Entertainment Group on Friday made a stellar trading debut on the Hong Kong stock exchange with its shares opening 19.05% higher at HK$7 ($0.9). The stock soared 83.67% to close at HK$10.8.
Strawbear is backed by the Chinese online video platform iQIYI.
Strawbear reached a market capitalisation of HK$4.39 billion ($566 million) after raising a total of HK$975 million ($126 million) in its initial public offering on the Stock Exchange of Hong Kong.
The entertainment group sold 166 million common shares at a price of HK$5.88 ($0.76) apiece.
It attracted a slew of novel cornerstone investors including IDG’s Origin Flair Limited, Asian alternative investment manager Snow Lake Capital, and New York-listed Chinese leading online discount retailer Vipshop Holdings.
Strawbear will deploy the IPO proceeds towards TV series production.
China Merchants’ China Merchants Securities International along with China Securities International served as the joint sponsors for the deal.
Set up in 2014 by Taiwanese singer and actor Nicky Wu, Strawbear has been engaged in the production and distribution of TV and web series.
Strawbear CEO Xiaofeng Liu remains the largest shareholder with a 43.81% stake in the firm while iQIYI owns 14.68%. iQIYI’s subsidiary Taurus Holdings had invested in Strawbear’s Series A1 in 2018 and A2 round in 2020.