China's largest movie distribution company China Film Co is planning to raise 4.09 billion Yuan ($611 million) through its initial public offering (IPO), making it the biggest IPO ever in country's entertainment industry.

According to filings filed with regulators on Wednesday, China Film Co plans to issue around 467 million shares through an IPO that will be listed on Shanghai Stock Exchange. Bloomberg reported that the IPO proceedings will start from July 28, while the company would start gauging the mood of investors from July 22 - 25.

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The distribution behemoth, which is controlled by state-owned China Film Group, will use the raised capital to fuel its business expansion. This includes investment in 53 movies and 14 TV dramas over the period of three years. The capital will also give the company much needed impetus to compete with major competitors like Dalian Wanda Group Co, which is owned by billionaire Wang Jianlin.     

The company has hired China Securities Co. to arrange the IPO. It was initially planning to make an IPO in 2014, only for it to be postponed later.    

China Film Co. recorded a 73 percent growth in profits last year to $130 million (RMB868 million) and has a market capitalization of around $2.35 billion, according to Variety.

Distribution forms a key part of China's burgeoning movie market, which is mostly dominated by local companies. Today, China's movie market is among the fastest-growing in the world, with most experts predicting that it will overtake the US as world's largest film market within a few years.

Tagschina, China Film Co., China IPO, china business