The Jakarta Post
Media conglomerate PT Media Nusantara Citra (MNC) plans to raise Rp 1.01 trillion (US$71.71 million) from an initial public offering (IPO) of its subsidiary PT MNC Studios International (MSI).
The publicly listed company is offering 1.56 billion shares, equal to 30 percent ownership, at a price per share of Rp 500 to Rp 650.
MSI president director Ella Kartika said Tuesday that around 33 percent of the proceeds would be used for the refinancing of medium-term notes (MTN), while 20 percent would go to the company’s integrated movie studio in Lido, West Java, and another 12 percent would fund production house development.
The remainder would be used as corporate cash, she said.
"Our integrated studio in Lido, Movie Land, will have shooting facilities, a dormitory and post-production infrastructure," she said during a due diligence meeting in Jakarta.
MSI finance director Dewi Tembaga said MSI’s revenue increased by 59.31 percent to Rp 1.11 trillion in 2017, beating growth of 33.44 percent to Rp 698.27 billion in the year before.
The company’s net income grew to Rp 121.54 billion in 2017 from Rp 53.59 billion a year earlier.
MNC Group chairman Hary Tanoesoedibjo said 75 percent of MSI’s revenue came from its parent. The studio is the sole supplier of entertainment programs and serials to MNC Group's TV stations.
"In the future, the group contribution will be decreased, as we increase sales to third parties. Other than serials for TV, the studio also creates web series for applicators like YouTube," he said. (gda)