Indonesia’s Blitz Launches $62 Million Share Sale

Indonesia’s Blitz Launches $62 Million Share
Courtesy of CGV Blitz

Graha Layar Prima, Indonesia’s number two multiplex chain, is seeking to raise $62 million (IDR850 billion) from a huge share issue.

The company, which operates under the CGV Blitz banner, says that up to $18 million (IDR250 billion) will be used to pay down existing debt. The balance will be used for cinema expansion in DKI Jakarta, Banten, West Java, Central Java and North Sumatra.

Currently it operates 16 complexes.

The share sale is structured as a rights issue of its Class C shares, and would dilute existing shareholders by 25% if they do not take up their rights.

The total amount to be raised is equivalent to 250% of the company’s net revenue in 2014 (IDR332 billion), the year it floated on to the Indonesian Stock Exchange.

The company has managed to keep revenue increasing since then – interim results for the 9 months to September 2015 show revenues of $20.7 million (IDR287 billion), compared with $16.3 million (IDR226 billion) in the same period in 2014 – but it remains loss making.

Losses increased in 2014 to $2.13 million (IDR29.5 billion) and stand at $2.07 million (IDR28.7 billion) for the period from January to September last year.

The company rebranded from Blitzmegaplex to CGV Blitz after Korean group CJ-CGV and its Hong Kong-based partner IKT Holdings each took 14.8% share stakes following debt to equity conversions.

Investment in the cinema industry in Indonesia remains closely controlled. And Group 21 remains the market leader operating the majority of the country’s screens. Local conglomerate, Lippo intends a massive shakeup of the sector and has announced plans for 300 complexes with 2,000 screens to be built over the next 10 years. As of January 2016 it had built 15 Cinemaxx complexes with 76 screens.

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  1. Picture_Play says:

    Well it’s not unexpected and surprising. Blitz has always been struggling from the second year it operated.

    The biggest problem with it is wrong management and lack of innovation of its screen.

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