[마켓인사이트]CJ CGV Vietnam Holdings "The first place to be competitive"

Shim Jung-bum, CEO of CJ CGV Vietnam Holdings, who is about to be listed on the securities market, said at a press conference at CJ Yongsan Ipc Mall in Seoul on December 12. May 2, "I will secure the first place in the Vietnamese film market." The company will enter the securities market on April 16.

CJ CGV Vietnam Holdings is a Vietnamese subsidiary of CJ CGV and operates a movie theater exploitation and distribution company in Vietnam. At the end of the third quarter, CG CG Vietnam Holdings' local branch office had a 49% market share, which is above the combined market share of the second, third and fourth companies. According to the company, in the first half of this year, the market share in Vietnam was 41% and the share of films in Vietnam was 69%. "By steadily increasing the number of theaters, we will reach 124 in 2022 and increase the screen share to 60%," Shim said.

"We have obtained exclusive distribution rights for four major Hollywood studios, including Warner Bros., Walt Disney, Paramount and Universal, and we plan to add another venue in the near future." He also announced his intention to increase advertising revenue by consolidating his dominant position in film and distribution.

CJ CGV Vietnam Holdings is very excited about the growth of the Vietnamese film market. Due to the young population, movie consumption is expected to increase. "While Korean films are booming and the film market has grown rapidly, it is quite possible that Vietnam will experience a growth rate similar to that of Korea due to the production of national blockbusters." "The company holds the exclusive rights to the IMAX film in Vietnam and operates a variety of specialty stores, which allows it to charge higher fees than its competitors," he added. "Purchases also contribute to profits."

In the first half of this year, the company generated revenues of 74.9 billion won, operating profit of 7.4 billion won and net income of 4.8 billion won. Last year, annual sales amounted to 128.3 billion won, operating income to 11.4 billion won and net profit to 7.5 billion won.

The preferred offer of CJ CGV Vietnam Holdings will be between 18,900 and 22,300 won, reflecting the results of the two-day demand forecast (pre-subscription of institutional investors). The amount of the proposed public offering based on the perimeter of the proposed IPO (428,817 new shares issued and 1,248,571 shares issued by CJ CGV issued by CJ CJV) is estimated at between 108 and 130 billion W, with a capitalization of Stock Exchange estimated at 275 to 336 billion W. CJ CGV plans to improve its financial structure by repaying its loans. CJ CGV Vietnam Holdings plans to expand its movie theaters and mergers and acquisitions to extend to neighboring countries.

The company receives a general subscription of 7 to 8 days. The directors of the IPO are Shinhan Investment and Hanwha Investment Securities.

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