JAKARTA. PT Nusantara Sejahtera Raya Tbk (CNMA) will allocate over 50% of the proceeds of its initial public offering (IPO) for the development and expansion of Cinema XXI theatre network in Indonesia.

According to the official statement received by IDNFinancials, CNMA will issue 8.33 billion shares in IPO. Assuming that the price is set to IDR 288 per share, the company might raise IDR 2.4 trillion of fresh funds at the end of this corporate action.

The total allocated IPO proceeds for expansion reaches 65%, equal to approximately IDR 1.56 trillion. The expansion will be carried out by establishing new theatres of 10% per annum within the next 5 years.

The opening of new theatres will take place in 37 tier-1 to tier-3 cities. The required capital expenditure for this initiative is projected to reach IDR 1.9 trillion.

Then, approximately 20% of IPO proceeds will be allocated for earlier payment of outstanding debt principal owed to PT Bank Rakyat Indonesia (Persero) Tbk (BBRI) worth IDR 1.39 trillion as of May 12, 2023.

Then, another 15% of IPO proceeds will be channelled for its working capital, including funding the material and service purchase to support CNMA’s operational activities. (KR/ZH)