IMAX Corporation (USA) (IMAX) – Regal Entertainment Group (RGC): This Movie Maven’s IPO About to Hit the Big Screen

While this is an improvement in theater sound quality, Dolby Laboratories, Inc. (NYSE:DLB) has pushed the technology even further as its Atmos experience allows for hundreds of points from which sound can emanate. Its limitation, however, comes down to the number of speakers a theater has installed and how the sound technician assigns sound to any particular space. Some 15 AMC ETX auditoriums take advantage of the Dolby Atmos technology.

As the second-largest operator in the U.S., and despite having 40% fewer theaters, AMC still generates about 90% of the revenues of its larger rival. Regal Entertainment Group (NYSE:RGC) recorded $1.485 billion over the first two quarters; AMC notched $1.340 billion in the same time frame.

Although many lament the state of Hollywood these days, stuck as it is on remakes, comic book action figures, and gimmicks — 3-D being the more notable trick to hike ticket prices — the industry is still moving forward and generating more revenues than ever.

AMC’s parent, Dalian Wanda Group, the Chinese conglomerate that bought the theater chain last year, hasn’t really committed to an offering size just yet with the $400 million price tag serving as a placeholder, and it will remain in control of AMC through its ownership of the theater’s Class B shares. However, when the theater chain does hit the public markets, there’s no reason to think it won’t be a blockbuster that will put its name up in lights.

 The article This Movie Maven’s IPO About to Hit the Big Screen originally appeared on Fool.com and is written by Rich Duprey.

Fool contributor Rich Duprey owns shares of Dolby Laboratories (NYSE:DLB). The Motley Fool recommends Dolby Laboratories and IMAX. The Motley Fool owns shares of IMAX.

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