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T Graha Layar Prima, operator of the Blitzmegaplex cinema chain, is due to launch three new cinemas this year, using proceeds from its recent initial public offering (IPO).

The cinemas would be built in Yogyakarta; Bandung, West Java, and Balikpapan, East Kalimantan, costing around US$2 million for each cinema, Graha Layar Prima'€™s marketing director, Ferdiana Yulia Sunardi, said on Thursday.

'€œSince becoming a public company, we will be more aggressive in our expansion plans, starting this year,'€ Yulia said during a press conference.

Graha Layar Prima expects its expansion to boost the company'€™s revenue to Rp 320 billion this year, up from Rp 228.65 billion in 2013.

'€œWe expect our revenue growth can reach 40 percent this year, similar to last year,'€ Ferdiana said.

The increase in revenue will be generated by an estimated 30 percent increase in the number of cinemagoers to 6.5 million people from 5 million people last year.

Graha Layar Prima aimed to have a total of 40 cinemas with between 500 and 600 screens by 2017, according to Ferdiana.

The company currently operates 11 cinemas with 100 screens in Balikpapan, Bandung, Bekasi (West Java), Batam (Riau Islands), Serpong (Banten) and Jakarta.

The growing middle class and the increasing domestic movie production in the country are two factors behind the company'€™s plans to open new cinemas.

Tourism and Creative Economy Ministry data shows that the number of cinemas and screens has risen steadily, from 142 cinemas and 458 screens in 2004 to 325 cinemas and 1,037 screens at the end of last year.

'€œWe will allocate proceeds from our IPO to develop our business,'€ Ferdiana said.

Graha Layar Prima generated Rp 223 billion ($19.6 million) in funds by floating 74.4 million shares, or 31.26 percent of its enlarged capital, at Rp 3,000 each.

The shares, traded under the code BLTZ, rose 13.3 percent on their debut on Thursday, closing trading at 3,400 apiece.

'€œThis share listing is a milestone for us and the country'€™s cinema industry. We are the first cinema chain operator to offer an IPO in Indonesia,'€ Graha Layar Prima director Brata Perdana said, adding that the company'€™s shares were 3.4 times oversubscribed.

PT Investa Saran Mandiri analyst Kiswoyo Adi Joe said the future for Graha Layar Prima'€™s shares would be bleak, as the company was still experiencing losses and had to pay off debts to its foreign creditors.

'€œI am not sure that people will want to invest because of Blitzmegaplex'€™s ongoing financial problems,'€ Kiswoyo said. (alz)