Jakarta. Nusantara Sejahtera Raya, the largest movie theater chain in Indonesia which owns the Cinema XXI brand, plans to conduct an initial public offering (IPO) to raise Rp 2.4 trillion ($158 million) in fresh capital as the business begins to regain ground lost during the Covid-19 pandemic.

Cinema XXI will issue 8.3 million shares with a price range of Rp 270 to Rp 288 per share from July 10 to July 14, according to Chief Executive Officer Hans Gunadi, who spoke at a news conference in Jakarta on Friday.

Indo Premier Sekuritas, JP Morgan Sekuritas Indonesia, Mandiri Sekuritas, and UBS Sekuritas Indonesia have been appointed as underwriters for the IPO.

Of the proceeds from the IPO, Cinema XXI plans to allocate 65 percent towards building new theaters in various cities across Indonesia and acquiring projectors, sound systems, and other state-of-the-art equipment. Around 20 percent of the proceeds will be used for short-term debt repayment, while the remaining 15 percent will serve as working capital.

"The habit of going to movie theaters remains strong in Indonesia, and there is high potential for growth in the number of theaters. We are confident about the future of the entertainment business, particularly the movie theater sector, in Indonesia," Hans said.

Founded in 1987, Cinema XXI currently operates 1,235 screens across 230 theaters in 71 cities, with a target of reaching 2,000 screens within the next five years, as per information available on the company's website.

The company has made investments in advanced technologies to enhance sound systems and picture quality, including IMAX and Dolby Atmos, in some of its theaters.