China Storms the IPO Market This Week

by: Renaissance Capital IPO Research

Bona Film Group Limited (NASDAQ:BONA), a leading film distributor in China, raised $100 million by offering 11,740,000 ADSs at $8.50 per ADS, within its expected range of $7 to $9. The Beijing-based company, which is backed by Sequoia, SIG China and Matrix Partners, is one of the largest non-government owned distributors in China, and it accounted for 44% of the top 20 domestic films' box office receipts in 2009. Bona Film also engages in film production and operates a talent agency, and it recently acquired a small movie theater chain with the goal of becoming a more integrated film company in China's fast-growing film and entertainment industry. Bona Film will begin trading on Thursday on the NASDAQ under the symbol "BONA". BofA Merrill Lynch (NYSE:BAC) and J.P. Morgan (NYSE:JPM) acted as lead managers on the deal.

Bona Film is one of six potential IPOs from China to list on U.S. exchanges this week, and it follows on the heels of record performances from internet companies (NYSE:YOKU) and E-Commerce China Dangdang (NYSE:DANG), which jumped 161% and 87%, respectively.'s return was the best first day pop of any U.S. listed IPO since Chinese search engine (NASDAQ:BIDU) soared 354% in August 2005. Three more Chinese IPOs are on deck to price tonight: mobile application store Sky-mobi (NASDAQ:MOBI), Beijing-based automobile dealership Lentuo International (NYSE:LAS), and Chinese paper packaging manufacturer China Shenghda Packaging Group (NASDAQ:CPGI).