Wanda Cinema Line Co., the cinema unit of real estate conglomerate Dalian Wanda Group Co., is preparing for a $321 million Shenzhen initial public offering (IPO), according to a filing with the China Securities Regulatory Commission.

News of the IPO comes as Wanda Cinema Lines’ net profit and revenue has been steadily increasing. The company’s net profit increased 55 percent to $96.6 million in 2013, from $62.2 million in 2012. Similarly, the company’s total revenue increased 33 percent to $644 million in 2013, from $485 million in 2012.

Wanda Cinema Line is China’s largest movie theatre operator with 142 cinemas in 73 cities across the country. The company hopes to use profits from its IPO to open new cinemas and supplement working capital.

Dalian Wanda’s investments in the cinema business have not been limited to China. In May 2012, Dalian Wanda purchased North America’s second-largest movie theater chain, AMC Entertainment, for $2.6 billion.

That acquisition made Dalian Wanda the world’s biggest cinema owner, and the investment has paid off. Dalian Wanda invested about $800 million for the 80 percent stake in AMC. In just 18 months, that 80 percent stake more than doubled in value to $1.7 billion, delivering a gain of $900 million.

Posted by Catherine Matacic