Cinema XXI owner to raise 2.25t rupiah in IPO priced at bottom
PT NUSANTARA Sejahtera Raya, the largest cinema chain operator in Indonesia, raised about 2.25 trillion rupiah (S$198 million) after pricing its initial public offering (IPO) at the bottom of a marketed range, according to people familiar with the matter.
The owner of Cinema XXI sold around 8.335 billion shares at 270 rupiah each, the people said, asking not to be identified as the information isn’t public. The company was set to sell as many as 8.34 billion shares for 270 rupiah to 288 rupiah each, according to the prospectus. The first day of trading on the Jakarta Stock Exchange is scheduled for Aug 2.
A representative for Nusantara declined to comment on the IPO, including the final pricing before an official announcement.
Indonesia’s IPO market is having a banner year, with companies raising US$2.92 billion so far, according to data compiled by Bloomberg. That’s more than the entire amount raised in Jakarta last year, and second highest in Asia after China. Nusantara’s offering will be the largest this year from the country’s consumer sector, with the year’s top IPOs coming largely from metal and mining firms.
The country’s post-pandemic reopening has contributed to Nusantara’s renewed financial performance, returning a net income of 460.4 billion rupiah in 2022 after registering annual losses in the previous two years, the prospectus shows. The movie theatre chain operated 1,235 screens across Indonesia as of March, according to its website.
Cinema XXI’s food and beverage business with its more lucrative margins is a driver of the company’s bottom line, becoming the unique value that sets it apart from its peers in the US and Asia, Samuel Sekuritas analysts Muhammad Farras Farhan and Laurencia Hiemas wrote in a report ahead of the listing.
The majority of the proceeds from the IPO will be used to expand Cinema XXI’s network, while 20 per cent will be used for early repayment of debt to PT Bank Rakyat Indonesia, the prospectus shows. The underwriters are PT Indo Premier Sekuritas, JPMorgan Chase & Co, PT Mandiri Sekuritas and UBS Group. BLOOMBERG
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