G.H.Y Culture & Media set to be SGX's third non-Reit mainboard listing this year

Group lodges preliminary prospectus; several parties commit to be cornerstone investors

Singapore

ENTERTAINMENT and content provider G.H.Y Culture & Media Holding Co has set its sights on becoming the third non-Reit mainboard listing on the local bourse this year.

On Wednesday, the Cayman Islands-incorporated group lodged its preliminary prospectus. The company's core business is in the production and promotion of dramas, films and concerts in the Asia-Pacific region. It also engages in talent management and costumes, props and makeup services.

The company said in the prospectus that it plans to use the proceeds from the IPO (initial public offering) and issuance of new cornerstone shares to invest in production, acquisitions, joint ventures and strategic alliances to expand its TV programme and film production, as well as concert production business segments. Proceeds will also be used for general corporate and working-capital purposes.

G.H.Y was incorporated in 2018 with the intent of becoming the holding company of GHY Malaysia and GHY Singapore, which secured the rights to film and produce a remake of the popular Singapore TV drama The Little Nyonya.

The remake was directed by chairman and group chief executive officer Guo Jingyu, who is a veteran in the media and entertainment industry in the People's Republic of China with over 25 years of experience as a producer, director and scriptwriter.

Other than the production of films, the group had successfully held concerts in Singapore featuring artistes such as Li Ronghao and Jay Chou.

For the first half of 2020, G.H.Y's net profit stood at S$13.1 million, up from S$11.8 million a year ago, prior to the introduction of the group's concert production and costumes, props and makeup services.

In FY2019, it posted a net profit of S$12.4 million; in the financial period between March 22 and Dec 31, 2018, it had a net loss of S$1.3 million.

Revenue for the first six months of 2020, FY2019 and that of the financial period in 2018 came in at S$37.2 million, S$66 million, and S$3.4 million respectively.

The group does not have a fixed dividend policy, but intends to recommend dividends of at least 30 per cent of its net profit after tax for FY2020 (excluding the S$10 million in dividends declared by the board in FY2020) and FY2021.

From the financial results for the six months of 2020, its TV programme and film-production business accounted for the bulk of its business, contributing 58.9 per cent of revenue. This is followed by concert production, which accounted for 39.8 per cent of the business. Talent management services and costumes, props and makeup services made up the remainder.

Several parties have committed to get onboard as cornerstone investors. They are Epical Entertainment, Hong Kong Chixin Investment, consultancy company ICH Capital, entertainment service provider iQIYI International Singapore, King Kong Media Production, OSIM International founder Ron Sim, Songful Global Investment, Qilin Asset Management, brand developer V3 Brands and investment holding company Yinson Capital.

Upon successful listing, G.H.Y will be the third non-Reit (real estate investment trust) listing on the mainboard this year - a turnaround from 2019, when there were none.

Nanofilm Technologies made its debut in October, while Credit Bureau Asia lodged its final prospectus last Thursday.

United Hampshire US Reit was the first IPO of the year.

DBS, UOB Kay Hian and Bank of China, Singapore are the joint underwriters and book runners of the IPO.