Eros International Plc (EROS.L), an Indian integrated media and entertainment company, on Friday filed for an initial public offering of its stock with the U.S. Securities and Exchange Commission, with the proposed maximum offering price of $250 million. The company intends to list itself on the New York Stock Exchange under the ticker symbol 'EROS'.
The company, which is already listed in the AIM market of the UK's London Stock Exchange, said it will apply for delisting from the AIM, noting it will not be possible for it to maintain a dual listing in the long term.
The delisting is subject to both shareholder approval and to the effective listing of the A ordinary shares on the NYSE.
According to the company, the U.S. capital markets in general, and the NYSE in particular, will best achieve its objectives for enabling the continued growth.
The company noted that its Board has been "considering for some time which stock market would be the most appropriate for the listing of the Company's share capital, in terms of providing a more relevant peer group of similar companies, a broader financial analyst coverage and increased liquidity, as well as efficient access to additional equity capital on more favorable economic terms."
Eros plans to use the net proceeds from the U.S. offering to fund new co-productions and acquisitions of Hindi and regional film catalogue content and film-related content, to grow its digital and other distribution channels as well as for general corporate purposes.
The offering is being made through Deutsche Bank Securities, BofA Merrill Lynch, Citigroup, and UBS Investment Bank.
Eros said its directors unanimously recommended that the company delists from AIM, which is expected to take effect on May 2. The directors also recommend that shareholders should vote in favor of the proposals at the upcoming extraordinary general meeting to be held on April 24.
Eros, in the nine months ended December 31, 2011, generated pre-tax profit of $57.3 million and revenues of $166.3 million, a growth of 30.5 percent and 33.8 percent respectively, from last year.
In London, Eros shares are currently trading at 231.70 pence, up 7.70 pence or 3.44 percent.
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by RTT Staff Writer
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