Will IPO, Cinema Cinema XXI Set Price Of IDR 270-IDR 288 Per Share

JAKARTA - PT Nusantara Sejahtera Raya Tbk or known as Cinema XXI plans to immediately hold an Initial Public Offering (IPO) on the Indonesia Stock Exchange (IDX). The initial bid price (book building) is set at IDR 270-IDR 288 per share.

Cinema XXI President Director Hans Gunadi said the company would offer a maximum of 8.33 billion new shares or 10.0 percent of the issued and paid-up capital after the IPO.

He continued, the company set an initial offering period from 10 to 14 July 2023, by targeting to receive as much funds as IDR 2.4 trillion in the IPO celebration later.

"This corporate action will strengthen Cinema XXI's commitment to always provide the widest possible access for the public to watch favorite films, including by opening cinemas in potential areas throughout Indonesia," Hans said, quoting Antara.

For the use of IPO proceeds, Hans explained that the company will use around 65 percent to finance capital expenditures for the development of cinema networks in Indonesia, which will be carried out through the construction of new cinemas.

In addition, the purchase of image and voice projection equipment with the latest technology and other equipment, to improve the quality of existing cinemas and the comfort of the audience.

Then, around 15 percent will be used for working capital, and about 20 percent for the Company's short-term payment of obligations.

As the underwriter, the company has appointed PT Indo Premier Sekuritas, PT JP Morgan Sekuritas Indonesia, PT Mandiri Sekuritas, and PT UBS Sekuritas Indonesia.

"We are optimistic about the development of the entertainment industry in the country, especially the cinema sector. This is supported by a strong film viewing culture in Indonesia and the potential for the growth in the number of cinema screens in Indonesia is still very large," said Hans.

A survey by Euromonitor International in early 2023 stated that 76 percent of people in Indonesia go to theaters, at least once a month, and 62 percent of Indonesians view watching as one of the main social activities, such as spending time with family or friends.

In addition, Euromonitor also noted that Indonesia has a large and growing domestic film industry, which is projected to contribute to Indonesia's Gross Box Office (GBO) in 2023 of 51 percent.

For information, Cinema XXI posted revenue of IDR 4.40 trillion, or an increase, from the previous year of IDR 1.28 trillion.

Revenue in 2022 was mainly supported by sales of cinema tickets by 61 percent, sales of food and beverages by 33 percent, advertisements by 3 percent, and digital platforms by 3 percent.

Along with that, the company posted a net profit of IDR 506 billion in 2022, from the previous loss of IDR 354 billion in 2021, with EBITDA of IDR 1.44 trillion in 2022, from the previous IDR 329 billion in 2021.