The IPO prospectus that gives you a new definition of clubbing

Magnum, a chain of three Hong Kong nightclubs, is launching an initial public offering tomorrow.

Obviously, briefing prospective investors beforehand is, as with any business, paramount, and Magnum has left no stone unturned in its prospectus.

The document includes a definition of nightclubs, highlights the popularity of the Jagerbomb and describes how, on occasion, people drink while dancing.

In the context of the Prospectus, the words "clubs: and "clubbing venues" (generally known as disco or discotheque) refer to entertainment venues in which typically have night time operating hours and are differentiated from other bars, pubs, lounges and taverns by the existence of a dance floor and DJ booth.

And fleshing out the kind of scene one may expect to find:

The aura and atmosphere of the modern clubbing scene is filled with images of people moving in unison to the beat of synthesised remixed dance and electronic music spun out by a DJ perched upon an elevated stage.

There's something reminiscent - in the most juxtaposing way possible - of Charlie Brooker’s description of nightclub in The Guardian, back in 2007:

Clubs are despicable. Cramped, overpriced furnaces with sticky walls and the latest idiot theme tunes thumping through the humid air so loud you can't hold a conversation, just bellow inanities at megaphone-level.

Magnum's three clubs - Magnum, Beijing Club and Billion Club - are all in the same boisterous district of Lan Kawi Fong, Hong Kong. Whilst not in the fanciest locations, customers are spared no expense.

When it comes to decor, the Billion Club sports a life-sized bronze bull, while both it and Magnum have diamante-encrusted loos. Motorbikes, pole dancers and various gold-coated things regularly grace the floors.

The prospectus also includes a rundown of the most popular alcoholic drinks at the club. Jagerbomb came in fifth place while vodka took fourth and third. Moet & Chandon Magnum Champagne proved the most popular beverage.

Interestingly, the group has put its growth down to a 50 per cent jump in overseas professionals emigrating to Hong Kong after the economic crisis, which it thinks has altered the drinking habits it sees:

...this leads the Hong Kong alcohol consumption and night entertainment scene closer to the consumption patterns observed in western countries.

Magnum’s IPO is actually very small by most standards. But the sale’s proving more than popular.

Investors gave places orders for over 3,000 times the number of available shares, making it one of the most desirable stock offering’s Hong Kong’s ever seen.

Proceeds from the IPO will be used to fund a fourth club, Zentral.

Speaking to the Wall Street Journal, Peter Wong, who works at a brokerage and visits the Magnum club twice a week, commented, "I would actually be interested in the IPO, but it's very hard to get into", while pouring a HK$5000 (£390) bottle of Belvedere vodka.

But he's skeptical when it comes to long-term investment in the club group: "I would dump the shares quickly... People are fickle and will just move on to whatever the hottest new club is."