CGV Vietnam to go public on Korean bourse
CGV Vietnam to go public on Korean bourse
The Vietnamese arm of South Korea’s largest multiplex cinema CJ CGV plans to make an initial public offering (IPO) on the Korean stock exchange.
The plan was unveiled as the Korean company seeks to raise fresh capital to consolidate its leading position in the Southeast Asian market.
According to Korea’s Pulse News, CGV Vietnam Holdings has sent a preliminary application for IPO to the Korean Exchange. If approved, CJ CGV would become the fourth Korean company to float its foreign affiliate on the Korean bourse.
Earlier in March, MK News reported CGV Vietnam could go public on the Korean exchange this October with the lead underwriter being Shinhan Investment Corp and Hanwha Investment & Securities Co advising on the IPO.
Investment bank sources put CGV Vietnam’s market value at an estimated 400 billion won (US$375.5 million) at the time.
CJ CGV acquired Viet Nam’s largest multiplex cinema owner MegaStar Media Company in 2011 for 78.3 billion won. CGV Vietnam is now considered one of the most profitable arms of CJ CGV, which operates theater chains in seven countries, including China, Russia, and the United States.
The Vietnamese unit is the largest cinema operator in Viet Nam, holding a dominant 45 per cent share in the country’s cinema market and about 60 per cent of the distribution market.
It posted a net profit of 8.3 billion won (US$7.55 million) on a consolidated basis last year.
