South Korea’s largest multiplex cinema chain CJ CGV aims to list its Vietnamese arm CGV Vietnam on the Korean Stock Exchange to raise fresh capital to strengthen its leading position in the Southeast Asia market, Korea’s Pulse News reported.
S Korean’s cinema chain CJ CGV plans IPO for Vietnamese unit
South Korea’s largest multiplex cinema chain CJ CGV, which wholly owns CGV Vietnam Holdings, was said to send a preliminary application for initial public offering (IPO) to the Korean Exchange.
That would make CJ CGV the fourth Korean company to float its foreign affiliate on the stock market, after LS Cable & System Asia, Hwaseung Enterprise, and Doosan Bobcat, the portal added.
Founded in June 2004, CGV Vietnam is now the largest cinema operator in Vietnam with a 45.3 per cent market share in the first quarter.
Recently, Vietnam-based media company Phuong Nam Cultural JSC proposed to sell 12.5 per cent stake in CGV Vietnam to real estate developer Black Diamond Investment JSC.
After the transaction, which is scheduled for July 5, the ownership of Phuong Nam in the cinema operator will reduce from 20 per cent to 7.5 per cent.
CJ CGV is a unit under CJ Group – one of the largest diversified economy groups of South Korea which is present in 21 countries around the world. Its Vietnamese arm posted a net profit of 8.3 billion won ($7.55 million) on a consolidated basis last year. It owns 337 screens in 55 cinemas across the country.
By Quynh Nguyen