Animated films have come a long way since Bambi and Snow White

The firm sold 29 million shares at $28 each, giving it a market value of more than $3bn. The estimated offer price was $23-$25 per share.

Hollywood moguls Steven Spielberg, Jeffrey Katzenberg and David Geffen set up the Dreamworks Studios a decade ago.

Its animation arm, along with rival Pixar, has revolutionised the industry.

Ambitions

Money from the share sale will be used to pay off debt and fund future productions.

Dreamworks Animation has set itself the ambitious target of two animated features a year.

DreamWorks topped the US box office with its latest film Sharks Tale

Former Disney executive Mr Katzenberg will lead the new company, which is based in Glendale, California.

The group's most recent success Shark Tale has already collected almost $140m at US and Canadian box offices.

Prior to that the studio's other big money making offering Shrek 2 earned an estimated $850m in global ticket sales.

Dreamworks will, however, face stiff competition from Pixar Animation Studios - the group behind Toy Story.