First movie share launch planned

In an innovative approach to film financing, a Los Angeles firm is offering shares in an upcoming movie for $8.75 (£5.40) apiece.

Civilian Pictures is preparing an initial public offering (IPO) for "Billy Dead", a company whose sole purpose will be to make a film of the same name.

With some 900,000 shares on offer, Civilian hopes to raise more than $7m, after paying financing fees and other costs.

This sort of budget will allow filmmakers to complete a modest picture, but is not enough to get Billy Dead comprehensive distribution.

Profit and loss

As investments go, the movie business is highly risky.

The prospectus for Billy Dead advises investors that they should be prepared to suffer "complete loss" if necessary.

But optimists will be cheered by examples of small-budget films hitting the jackpot: My Big Fat Greek Wedding, for example, cost $5m to make, but grossed $350m worldwide.

Oscar nominee Ethan Hawke is lined up to the play the lead in Billy Dead, which concerns "long pent-up secrets of violence and incest" in a Michigan family.

Offering up

Hollywood is used to innovative forms of financing, and producers often scrape together small contributions from well-wishers.

But this is the first time that an unmade movie has been pre-financed by means of an IPO.

Civilian intends to extend the IPO method to more would-be movies, with budgets ranging from $3m to $25m.