JAKARTA. PT Nusantara Sejahtera Raya Tbk (CNMA) or Cinema XXI managed to collect fresh funds of IDR 2.25 trillion from its initial public offering (IPO) and is officially listed on Indonesia Stock Exchange (IDX) today (2/8).

As informed before, the number of shares issued by Cinema XXI was 8.33 billion shares or 10% of its issued and paid-up capital post-IPO. The shares of Cinema XXI were reportedly oversubscribed in the pooling tranche up to 25.7 times.

“Therefore, the pooling allocation rises from 2.5% to 12.5% of the entire shares offered in the IPO of Cinema XXI, as a result of this oversubscription,” Oki Ramadhana, President Director of Mandiri Sekuritas.

Meanwhile, Hans Gunadi, President Director of Cinema XXI, appreciates positive response from investors. “The funding gained from IPO will reinforce capitalisation and support the expansion of Cinema XXI theatre network,” he mentioned in the information disclosure in Indonesia Stock Exchange (IDX).

From the proceeds of the IPO, Cinema XXI will allocate approximately 50% to its capital expenditure in order to expand the theatre network. It is in line with the new theatre expansion target of 10% per year for the next five years.

Then, another 15% of the IPO proceeds will be used as working capital. Lastly, the remaining 20% will be spent as an early instalment of the principal of bank loans of Cinema XXI.

According to IDNFinancials data, the stock price of Cinema XXI in today’s first trading session in IDX peaked at IDR 306 per share. The volume of traded shares clocked up to 1.57 billion units with transaction value of IDR 464.93 billion. (KR/ZH)