Feasibility Analysis On IPO Of X Film And Television Company

The "the culture industry revitalization planning" stressed: "supporting qualified and mature enterprise financing from the main board market and growth enterprises market". This suggests that the cultural industry, especially the film and television industry has the opportunity to carry out the super-conventional development. The film and television industry as an important part of cultural industry, the important issue should be settled is its financing.At present, going public is an important way for enterprise to finance. X Film and Television Company(XFTC) as a leading enterprise in Daqing culture industry, should seize the opportunity, and go public as soon as possible, to realize the rapid development.In this paper, feasibility of XFTC going public project was analyzed comprehensively.First, in this paper the basic situation of XFTC is introduced, and film and television industry market conditions are analyzed. Second, the SWOT analysis for XFTC is carried on, and find out the strengths, weakness, opportunity and threats for XFTC. The strengths includes government support, unique marketing strategy, and typed production mode; the weakness includes small scale, insufficient product development ability, lacking professional talents; the opportunity includes development of film and television industry speed up, the state attaches great importance to the development of cultural industry, the development of pay TV and digital media; the threats includes the charge of private capital and foreign capital and the charge of new media development. Based on the analysis above, the critical success factors and the necessity and policy feasibility of XFTC going public are analyzed. Third, the total amount of capital arranged to raise by XFTC going public project, ownership structure,capital application, capital investment plan are put forward. Fourth, according to the investment plan, the product cost and revenue forecasts, economic evaluation for the company going public project, and the internal rate of return, financial net present value and payback period are calculated for the period of five years next XFTC going public. It is found by comparative analysis that XFTC public project has earnings outlook, and the project investment has economic feasibility. Finally, the risk including economic risk, market risk,management risk, finance risk and policy risk, legal risk faced by XFTC public project are analyzed, and suggestions to deal with these risk are also given.