Futu news on December 15th$STAR CM (06698.HK)$The company plans to issue 14.7316 million shares from December 15 to December 20, including a public offering of 1.4736 million shares and an international offering of 13.258 million shares at a price of HK $25.5 to HK $32.50 per share, which is expected to be listed on December 29th.

Star Chinese is China's largest variety show IP creator and operator by 2021 revenue, with a market share of 1.6 per cent. The company also owns and operates a huge Chinese film IP library, and is also a creator and operator of Chinese music IP.

Star Chinese has a wide range of popular variety shows IP, including music shows, dance variety shows, talent variety shows, talk shows, outdoor ╱ cultural variety shows and other variety shows. The company is one of the few companies that can create and operate variety show IP in a variety of major programming types.

In 2012, Star Chinese launched The Voice of China, one of China's most popular singing competition programs. The company creates and operates other long-time popular variety shows IP (such as "masked singers will guess", "good Chinese songs" and "brilliant Chinese"). The company has partnered with Youku, one of China's three major online video platforms, to produce a customized online dance competition program "this!" It's hip-hop.

Financially, the company's total revenue from 2019 to 2021 was 1.807 billion yuan, 1.56 billion yuan and 1.127 billion yuan respectively, and revenue for the first six months of 2022 was 183 million yuan, an increase of 18% over the same period last year.

In terms of net profit, the company's net profit from 2019 to 2021 and the first half of 2021 and 2022 were 380 million yuan,-38 million yuan,-352 million yuan and-25 million yuan,-13 million yuan respectively.

In terms of fund-raising purposes, the company intends to use the net global sale funds obtained for the following purposes: about 80 per cent of which will be used to fund the company's IP production and operations. Specifically, the company plans to create popular variety IP programs, enhance the production and operation capacity of film and drama IP, strengthen the production and operation capacity of music IP and further develop IP-related business; about 20% will be used to expand the company's audience to provide better customer service and to build the company's established entertainment IP industry value chain.

As for cornerstone investors, the Company has entered into a cornerstone investment agreement with TradArt Investment SP (Cornerstone Investor). The cornerstone investors have agreed to subscribe at the issue price or to procure their designated entities to subscribe for a certain number of offer shares that can be purchased at a total subscription amount of US $5 million (approximately to the full trading unit of 400 shares per lot) subject to certain conditions. Assuming an offer price of HK $29, cornerstone investors will subscribe for a total of 1.3392 million offer shares, accounting for about 9.09 per cent of the shares offered under the global offering and about 0.34 per cent of the total issued share capital of the company immediately following the completion of the global offering (assuming the over-allotment option has not been exercised).