The Vietnamese entity of South Korea’s cinema chain CJ CGV could go public on Korea’s main Kospi market as early as October.

CGV Vietnam’s market value is estimated at 400 billion won ($375.5 million), according to investment banking sources on Monday. The lead underwriter is Shinhan Investment Corp. with Hanwha Investment & Securities Co. to also advise on the initial public offering.

CJ CGV, an affiliate of the Korean conglomerate CJ Group, operates theater chains in seven countries, including China, Russia and the United States. The Vietnamese operation is considered one of the most profitable, holding a dominant 50 percent share in the country’s cinema market with a distribution market share of nearly 65 percent.

CGV Vietnam said its net profit doubled on year to 5 billion won in 2016 with sales jumping 22 percent to 111.1 billion won. Its gains have since picked up more speed, with net profit in the first half of 2017 totaling 7.1 billion won.

Its rapid growth has drawn interest from foreign investors around the world, including Hong Kong and Singapore, prompting the company to schedule a road show overseas, according to industry insiders.

CJ CGV entered Vietnam in 2011 with the acquisition of the country’s largest multiplex owner MegaStar Media Company. The Korean company owns a full stake in Envoy Media Partners Ltd., a special purpose company, which in turn owns 80 percent of CGV Vietnam.

After listing the Vietnamese chain, CJ CGV plans to pursue a public offering for its Chinese and Turkish units next year.

By Cho Hee-young and Kim Hyo-jin

[ⓒ Pulse by Maeil Business Newspaper & mk.co.kr, All rights reserved]