IMAX Corp. (IMAX) Said Planning IPO of China Unit

IMAX Corp. (NYSE: IMAX) shares are active early following reports that the company is considering an IPO of its China division.

According to the WSJ, the IPO could raise as much as $300 million and may happen as early as Q315.

IMAX applied to list IMAX China Holding late last month. The company tapped Morgan Stanley as its sole sponsor.

China's film market is still showing strong growth. The latest data has movie revenue in China growing 34 percent to $4.7 billion last year over 2013. It's the second largest film market outside the U.S. and market watchers see China overtaking the U.S. in terms of revenue by 2017.

Due to the still staggering growth, IMAX China reported at 31 percent increase in profit to $22.8 million last year, while IMAX Corp. saw profit fall 10 percent to $39.7 million.

Shares of IMAX are indicated higher early.

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