AKIPRESS.COM - IMAX Corp, the world's leading giant-screen theater operator, plans to sell a 20 percent stake in its Chinese business to two China-focused investment companies in an $80 million deal to pave the way for expansion and an anticipated initial public offering in the China market, China Daily reported.

Richard Gelfond, chief executive officer of IMAX Corp, said that China Media Capital, an investment fund launched in 2009, and private-equity firm FountainVest Partners would pay $40 million each to purchase 10 percent of the stake by early 2015.

As a wholly owned subsidiary of the Canada-based giant movie screen manufacturer IMAX Corp, IMAX China was established in September 2011 to better capitalize on the opportunities in the world's second-largest movie market.

IMAX China is planning to go public in Hong Kong, but will also consider the possibility of listing on other Chinese exchanges, such as in Shanghai, in case that doesn't work out or a better opportunity arises on the Chinese mainland, according to a spokeswoman for the company.

“To a certain extent, the partnership with the two China-focused investment groups will help to boost IMAX Corp's expansion in the China market, which is experiencing fierce competition in the giant movie screen market,” said Chen Shaofeng, deputy director of the Institute for Cultural Industries at Peking University.

IMAX Corp generated $56.5 million in China last year, up 26 percent year-on-year, while the North America market witnessed a 6.5 percent decline from a year earlier to $136.2 million. The compnay yielded $287.9 million in global revenue in 2013, increasing 1.8 percent compared with the previous year.