CGV to boost its presence in Vietnamese cinema marketCJ CGV Vietnam Holdings said Friday it will further expand its presence in Vietnam by maximizing funds from its planned listing in Korea this month.
The cinema chain based in Vietnam is scheduled to go public on Seoul’s main Kospi bourse on Nov. 16. It plans to issue 5.71 million shares, with the share price to be set between 18,900 won ($16.80) and 23,100 won, according to the firm and the bourse operator, Korea Exchange.
“We find great potential in the Vietnamese market, as its population is approaching 100 million and its income and domestic demand have been on a rise, but the entertainment market has not been developed,” chief 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 at 57 cinemas. In terms of film distribution and advertisement, CJ CGV also occupies the top spot.
“We expect our market share to grow from the current level of 41 percent to around 60 percent in five years,” he added.
Last year, sales of the holding firm came to 128.3 billion won, up 22.6 percent from the previous year, and its operating profit rose 4.8 percent on-year to 11.4 billion won.
It has selected Hanwha Investment & Securities and Shinhan Investment Corporation as its lead managers for the IPO.
In July, CJ CGV CEO Seo Jung said that the company aims to increase the number of its screens around the world to 10,000 in 11 countries by 2020.
Currently, the multiplex chain, owned by the food and entertainment conglomerate CJ, is the world’s fifth-largest cinema chain with 3,459 screens around the world.