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Cinema XXI to go public next month
PT Nusantara Sejahtera Raya, the company behind Cinema XXI, aims to raise Rp 2.4 trillion in an initial public offering (IPO) in August to expand its business.
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T Nusantara Sejahtera Raya, the company behind Cinema XXI, has announced its plan for an initial public offering (IPO) in August to raise capital for business expansion.
The theater chain operator said it would release 10 percent of its shares and, in a best-case scenario, reel in Rp 2.4 trillion (US$158 million) of extra capital for XXI.
“Cinema XXI has become the biggest cinema network operator in Indonesia in terms of box office gross revenue, audience as well as the number of screens,” said Cinema XXI president director Hans Gunadi in a press briefing on Friday.
“This is the right time to go public”, he added, given the prospects of a growing middle-income population.
The shares would be offered at the range of Rp 270 to Rp 288 apiece and start trading on the Indonesia Stock Exchange (IDX) on Aug. 2.
Sixty-five percent of the extra capital is earmarked for expansion, including building new theaters, as well as purchasing new movie projectors, sound systems and other equipment.
Around 20 percent of the newly raised funds is to be used to pay off short-term debt, and the remaining 15 percent will be reserved as working capital.
XXI is a juggernaut in Indonesia’s cinema landscape with a market share of 58 percent in December 2022, according to one of the IPO underwriters, PT Indo Premier Securities.
Its CEO, Moloenoto, claimed that 69 percent of national moviegoers chose Cinema XXI, as its presence extended beyond metropolitan areas to second- and third-tier cities.
“Cinema XXI is the market leader from many perspectives,” said Moloenoto in the press briefing.
As of December, it operated 225 cinemas in 55 cities, with a total of 1,216 screens, more than half of the estimated nationwide total of 2,107 screens.
Cinema XXI booked Rp 506 billion in net profit from Rp 4.4 trillion in revenue last year.
That sales figure marks a threefold increase from Rp 1.28 trillion booked in the year prior, but it is still only 64 percent of the Rp 6.89 trillion the company recorded in 2019, before the pandemic.
Moloenoto dubbed the latest figure as “relatively normal” given that the pandemic was still lingering in last year’s first half.
In 2021, the company suffered a loss of Rp 354 billion.
Sixty-one percent of XXI’s income comes from ticket sales, followed by 33 percent from food and beverages. Advertising and digital platform fees contribute 3 percent each.
A Euromonitor International survey from earlier this year found that 76 percent of Indonesians went to the movies at least once a month, and 62 percent named movie-watching as one of their main social activities.
