CJ CGV, South Korea’s leading multiplex cinema chain, has called off a plan to separately list its Vietnamese subsidiary on the Korean stock market. It will raise cash through a debt issue instead.
In consultation with the underwriters, CJ CGV announced last week that it would cancel the share issue, which had aimed to raise up to $116 million of new capital. It blamed a poor response to the book-building process on difficult stock market conditions and worsening investor sentiment. It is the sixth company to cancel a Korean IPO plan since September. Among the others is Kakao Games.
This week CJ CGV Vietnam announced that it has decided instead to issue consol – perpetual, fixed coupon – bonds worth $131 million (KRW 150 billion). The proceeds will be used to repay loans incurred during the company’s expansion phase, and also to invest in new businesses.