Prepare for Expansive Strategy, Cinema XXI Seeks Rp2.25 trillion from the IPO
- Cinema XXI plans to grow the number of screens by approximately 10% per annum for the next five years spread across Indonesia.
- Cinema XXI’s shares were oversubscribed in the pooling tranche up to 25.7 times.
- The Initial Public Offering (IPO) is a momentum for Cinema XXI to become a public company with Good Corporate Governance (GCG) and strengthen company’s commitment to Environment, Social, and Governance (ESG), including strengthen the commitment to develop Indonesia's film industry.
JAKARTA, August 2, 2023 - PT Nusantara Sejahtera Raya Tbk (Cinema XXI), a leader in the cinema industry and the iconic destination for movie-goers in Indonesia, officially becomes a listed company on the Indonesia Stock Exchange (IDX) that the shares are traded under the ticker symbol CNMA on Wednesday (2/8/2023).
Cinema XXI issued 8,335,000,000 (eight billion three hundred thirty-five million) new shares issued from the company's portfolio or 10.0% of the issued and paid-up capital after the Initial Public Offering (IPO) with offering price of Rp270 for each share. From the entire IPO process, Cinema XXI raised a total of Rp2.25 trillion. About 65% of the IPO proceeds after deducting issuance costs is allocated for capital expenditures to further strengthen its cinema networks in Indonesia. Cinema XXI plans to grow the number of screens by approximately 10% per annum for the next five years spread across Indonesia. About 15% of the net proceeds obtained from the IPO will be used for working capital, including the purchase of goods and services to support Cinema XXI's business activities. The remaining 20% will be used for early repayment of Cinema XXI's bank loan facility partially.
"Today, Cinema XXI begins an important milestone, by becoming a public company that is listed on the Indonesia Stock Exchange. During our 35 years of experience, Cinema XXI has successfully passed through various crises, from economic crisis, political crisis, and the latest that we have passed together, the Covid-19 pandemic. Nowadays, with a solid performance and based on a Survey by Euromonitor International in early 2023, Cinema XXI becomes the largest cinema chain operator in Indonesia in terms of gross box office revenue, total audience, and also the number of screens. With the increasing number of middle-income people and demographic conditions that continue to increase, as well as the spirit to continuously providing uncompromised, best quality entertainment at the affordable prices, we believe this is the right time to carry out an IPO and become a public company," said President Director of PT Nusantara Sejahtera Raya Tbk, Hans Gunadi.
Cinema XXI's optimism about the growth prospects of the cinema industry in Indonesia is reflected in investor interest in the book building period which took place on July 10-14, 2023 and the public offering period which took place on July 27-31, 2023. According to Mandiri Sekuritas President Director Oki Ramadhana, Cinema XXI's IPO shares were oversubscribed.
"Investors’ interest in the centralized allotment or pooling tranche is very high. There were an oversubscription of Cinema XXI shares up to 25.7 times. Therefore, the pooling allocation has increased from 2.5% to 12.5% of the total number of shares offered in the Cinema XXI IPO as a result of the oversubscription," said Oki Ramadhana.
"We welcome and appreciate the positive response from investors. The funding obtained from the IPO will strengthen capital and support the expansion of the Cinema XXI cinema network. In addition, the IPO will be a momentum for Cinema XXI to become a public company with Good Corporate Governance (GCG) and strengthen our commitment to Environmental, Social and Governance (ESG), including strengthening our commitment in developing the Indonesia's film industry," added Hans.
Solid Financial Performance
For more than three decades, the commitment and cooperation of the Cinema XXI’s family has been key in overcoming various challenges, including the Covid-19 pandemic. This hard work and commitment have led to a strong recovery in revenue to pre-Covid-19 levels. Cinema XXI booked revenue of Rp4.40 trillion in 2022 or equivalent to 64% of Rp6.89 trillion revenue in 2019, while Cinema XXI only started to operate at full capacity in May 2022.
In the first quarter of 2023, Cinema XXI's revenue increased by Rp247.6 billion or 39.0%, to Rp883.2 billion from Rp635.6 billion for the same period in 2022. The increase was due to an increase in revenue generated by cinema, food and beverage, advertisement and other business activities.
About Cinema XXI
Cinema XXI--operated under the auspices of PT Nusantara Sejahtera Raya Tbk is the largest cinema chain in Indonesia with 35 years of experience in the movie exhibition industry. Cinema XXI is committed to always providing the best quality movie-viewing experience and convenience for Indonesian public. As of the end of December 2022, Cinema XXI presented 1,216 screens in 225 cinema locations spread across Indonesia.
Cinema XXI is committed to continuously providing uncompromised, best quality entertainment at the affordable prices. In 2006, Cinema XXI launched m.tix to facilitate the movie tickets ordering through text messages which was later developed into a mobile-based application. In 2012, Cinema XXI presented a movieviewing experience with revolutionary technology, the IMAX theater. To better improve the services given to the customers, Cinema XXI has also equipped the theaters with the latest “Dolby Atmos” audio system.
Not only a place to watch movies, Cinema XXI is also a second home for people to spend time with their family and friends. Cinema XXI presents an unforgettable movie-viewing experience for today and tomorrow. For three consecutive years in 2017, 2018, 2019 Cinema XXI has been awarded the "World Branding Award" at Kensington, London as the Best Brand in the Entertainment Cinema Category. In early 2019, Cinema XXI was also awarded as "Millennials Top Brand Awards" by one of the preferred media of Indonesia's young generation as the first choice of millennials for the category of leading cinema network in Indonesia. It doesn't stop there, regardless of the Pandemic conditions in 2020, Cinema XXI was honored as "Industry Champion of the Year" by Asia Corporate Excellence and Sustainability (ACES) Awards.
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For more information, please contact:
Corporate Communication & Brand Management
PT Nusantara Sejahtera Raya Tbk (Cinema XXI)
Email: corporate.communications@cinema21.co.id