South Korea’s largest multiplex cinema chain CJ CGV is aiming to list its Vietnamese entity on the Korean bourse, as it seeks to raise fresh capital to further cement its leadership in the Southeast Asian market.

The Korean Exchange said Sunday it received a preliminary application for initial public offering (IPO) from CJ CGV Vietnam Holdings. If approved, CJ CGV would become the fourth Korean company to float its foreign affiliate on the Korean stock market, after LS Cable & System Asia, Hwaseung Enterprise, and Doosan Bobcat.

CJ CGV Vietnam Holdings, a wholly-owned entity of its Korean parent, was founded in June 2004 and is now the largest cinema operator in Vietnam with a 45.3 percent market share in the first quarter. It posted a net profit of 8.3 billion won ($7.55 million) on a consolidated basis last year, on sales of 123.8 billion won. It owns 337 screens in 55 cinemas across the country.

The Korean movie chain operates 445 movie theaters in seven countries, including Vietnam, Indonesia, Myanmar, China, Turkey, and the United States. Last year, it pulled in 107.4 million foreign viewers, exceeding for the first time the number of moviegoers at home, which stood at 103.8 million.

Hi Investment & Securities in a recent report projected the IPO to bump up CJ CGV’s corporate value, and held its buy position on the company with the price target set at 102,000 won.

By Jin Young-tae and Kim Hyo-jin

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