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ajor cinema operator Graha Layar Prima, which runs the popular CGV Blitz cinemas, is looking to raise capital on the stock market to pay off debts and fund capital expenditure this year as it copes with financial losses in the past few quarters.

The operator, whose cinemas were formerly known as Blitzmegaplex, expects to take upRp 850 billion (US$62 million) by offering around 110 million '€œClass C'€ shares in a rights offering, according to a statement it published through the Indonesia Stock Exchange (IDX).

The company'€™s prospectus announced that it planned to useRp 250 billion from the rights issue to pay off its debts.

'€œThe remainder will be used as capital expenditure to develop our business in several cities in Indonesia, particularly cities in Jakarta province, Banten, West Java, Central Java and North Sumatera,'€ the statement reads.

The offering, according to the published prospectus, is subject to approval at a general shareholders meeting on March 11. The company is expected to be given an effective date for the move by the Financial Service Authority (OJK) on April 27.

Shareholders who decide not to use their rights in the equity offering will have their existing shares diluted by around 24.6 percent, according to the statement.

Established in 2016, Graha Layar Prima currently operates 16 cinemas, eight of which are located in Greater Jakarta, three in Bandung in West Java, two in Batam in Riau Islands and one each in Yogyakarta, Balikpapan in East Kalimantan and Cirebon.

The number of cinemas and screens it owns has been rising steadily. In 2004 it operated 142 cinemas with 458 screens, and was up to 325 cinemas with 1,037 screens by Dec. 23, 2013, Tourism and Creative Economy Ministry data shows.

But soaring costs and forex losses have affected Graha Layar Prima'€™s finances, although its revenue continues to grow.

As of September, Graha Layar Prima saw its net losses go down by around 21 percent, from Rp 39.83 billion in 2014 to Rp 31.34 billion in the corresponding period last year.

Its revenue increased by 12.43 percent to Rp 115.66 billion during the reported period, compared with Rp 102.87 billion the previous year.

The company is 48.24 percent owned by PT Layar Persada and 22.25 percent owned by the public. South Korea'€™s CJ CGV Co. Ltd. and Hong Kong-listed IKT Holding Limited also each hold a 14.75 percent stake.

The cinema chain rebranded itself to become CGV Blitz from Blitzmegaplex, after the South Korea-based cinema firm bought in to the company last year.

Shares of the company, traded under the ticker code BLTZ, were at Rp 4,500 per share at the end of November last year, and as of Thursday had not moved from there, according to Bloomberg data.