| A CGV theatre in Vietnam Courtesy of CJ CGV |
CJ CGV Vietnam Holdings said Friday it will use funds raised by its planned listing on the Seoul main bourse to further expand its presence in Vietnam.
The cinema chain based in Vietnam is scheduled to go public on the KOSPI, Nov. 16, and plans to issue 5.71 million shares with a price to be set between 18,900 won (US$16.8) and 23,100 won, according to the firm and the bourse operator, the Korea Exchange.
"We see great potential in the Vietnamese market, as while its population is approaching 100 million and income and domestic demand have been rising, the entertainment market remains underdeveloped," Chairman Shim Jun-beom told reporters.
Wholly owned by CJ CGV, Korea's largest multiplex cinema chain, CJ CGV Vietnam Holdings has operated the Vietnamese chain through its subsidiary CJ CGV Vietnam since 2011.
It now leads the market there with 347 screens in 57 cinemas, and also has the top spot in film distribution and advertisements.
"We expect our market share to grow from the current 41 percent to around 60 percent in five years," Shim added.
Last year, the company saw 128.3 billion won in sales, up 22.6 percent from 2016, and an operating profit of 11.4 billion won, an increase of rose 4.8 percent.
Hanwha Investment & Securities and Shinhan Investment have been selected as lead managers for the IPO.
In July, CJ CGV CEO Seo Jung said that the company aims to increase its number of screens around the world to 10,000 in 11 countries by 2020.
Currently, the multiplex chain, owned by food and entertainment conglomerate CJ, is the world's fifth-largest with 3,459 screens. (Yonhap)