Nusantara Sejahtera Raya, the owner of Indonesia’s largest cinema chain Cinema XXI, is reportedly planning to raise up to USD $300 million in an initial public offering (IPO) by early 2024. The company aims to complete the IPO before the Indonesian general elections scheduled for later in the year. Bloomberg previously reported that Cinema XXI was looking to raise $500 million to $1 billion through an IPO in 2023. The major shareholder of Cinema XXI is Harkatjaya Bumipersada, followed by Adi Pratama Nusantara, while Singapore’s GIC holds a minority stake. Cinema XXI operates 1,216 screens in 225 locations and dominates the market with a 60% share.
Cinema XXI’s potential IPO would make it the second cinema chain to be listed on the Indonesia Stock Exchange (IDX). The first was Graha Layar Prima, the owner of CGV Cinema, which raised $15 million in its IPO in 2014. The cinema industry in Indonesia presents significant growth opportunities due to the low penetration rate, according to Yuanta Sekuritas head of research Chandra Pasaribu. However, the industry faces challenges from streaming services and limited availability of local movies, which leads cinema chains to invest more in acquiring overseas films. Statista projects that cinema user penetration in Indonesia will be 7.6% by 2027, up from 7% in 2023. The Indonesian IPO market has been active recently, particularly in the traditional economy sectors.