DEPOK (eNBe Indonesia) - While waiting market leader XXI’s IPO, cinema business player or production house firm PT Tripar Multivision Plus, owned by Raam Punjabi, has on Monday (April 10) kicked off its initial public offering (IPO) for 929.2 million shares, representing 15% of total issued and paid-up capital, priced at Rp224-250 per unit, to raise total proceeds of maximum Rp232.3 billion.
The implied market capitalization after the IPO is around Rp1.5 trillion, slightly above its enlarged equity (Rp1.15 trillion).
Raam is uncle of Manoj Dhamoo Punjabi, controlling owner of IDX-listed PT MD Pictures Tbk (FILM).
Raam and Manoj’s father Dhamoo Punjabi actually co-established Multivision but later on Dhamoo and Manoj pulled out reportedly due to different vision.
MD Pictures, as you know, is currently worth Rp17.5 trillion, unbelievably inflated from its equity of Rp1.54 trillion only. FILM is now traded with PE multiple over 100, also substantially inflated.
Unlike MD Pictures, which is focused on film production, Multivision expands in the cineplex business to compete players like XXI, CGV, and Cinepolis. Interesting that XXI Group is also preparing an IPO.
The book building or pre offering of Multivision starts today and will last in April 18, 2023. The offering is set for May 3-5, 2023 and listing on Indonesia Stock Exchange (IDX) is scheduled for May 9, 2023.
Acting as underwriters are PT Sucor Sekuritas and PT UOB Kay Hian Sekuritas.
Multivision will use 81.6% IPO proceeds for working capital, and the rest 18.4% will be injected into PT Platinum Sinema, to building new theater in Kebumen.
The Company is now seeking licenses or permits for building 5 new theaters located in Garut, Padang Sidempuan, Bondowoso, Demak, and Pangkalan Bun.
Multivision’s assets reached Rp1.1 trillion per January 2023, while liability amounted Rp198.7 billion. Then the equity was Rp917.5 billion.
The Company booked net profit of Rp76.9 billion in January-September (9M) of 2022, on sales of Rp226.9 billion.
Multivision said it recorded highest number of watchers in 2022, at more than one million, surpassing the amount before the wake of pandemic Covid-19.
Nation-wide, number of watchers for cinema reached 52.7 million with cumulative growth of 0.55%. And only 13% of the country’s population have access to cinema, meaning room to growth is there.
Back to Multivision, it now has 10 cinema locations, founded in 1990 as part of Parkit Film.
Multivision’s cinema is operated by its subsidiary Platinum Sinema with its popular Platinum Cineplex, founded in 2013 and operating cinema in 10 area–Ambon, Bitung, Baturaja, Lahat, Kolaka, Palopo, Magelang, Majenang, Sidoarjo, and Solo.
Urban Indonesian filmgoers may have never heard of Platinum Cineplex cinemas.
That’s understandable because Platinum Cineplex have run their business mostly in rural area, targeting second and third tier provinces.
But make no mistake, the Platinum Cineplex is an international cinema chain established in Southeast Asia.
Platinum Cineplex Indonesia was established under a partnership with the Major Cineplex Group of Mr. Vicha Poolvaraluck, a Thailand-based cinema/entertainment player.
Meanwhile, Intermedia Capital (MDIA), subsidiary of VIVA, which is immediate parent of ANTV, reported that its trade payables to Tripar Multivision Plus reached Rp107.27 billion per September 2022, and trade payables to Parkit Film reached Rp119.9 billion.
MDIA’s trade payables to others program material providers included PT Soraya Intercine Films (Rp201.9 billion), PT Spectrum Film (Rp54.4 billion), PT Dwiwarna Sentosa Ria (Rp26.9 billion), PT Red Candle (Rp20.4 billion), PT Bhaskara Mitra Manunggal (Rp15.9 billion), and PT Radio Merpati Darmawangsa (Rp9.9 billion).
Also, Visi Media Asia (VIVA) said its trade payables to Tripar Multivision Plus reached Rp107.3 billion per September 2022, Parkit Film Rp120 billion, and PT Soraya Intercine Rp202 billion.
Noting that, Multivision’s peer already listed on IDX is Graha Layar Prima (BLTZ) with popular brand Blitzmegaplex. BLTZ now has 71 cinemas with 408 screens.
Cinema operation was hardly hit by the Covid-19 pandemic during 2020 until mid 2022.
The restrictions on Cinema activities was still be carried out throughout 2022. But BLTZ was back in 100% operations starting in mid-2022.
BLTZ said number of admission in 2022 rose significantly, reaching 16.65 million, compared to 4.96 million and 4.05 million in 2021 and 2020, respectively.
It reported loss of Rp73 billion for 2022, narrowed from loss of Rp262.57 billion in 2021 and Rp447.47 billion loss in 2020.
While revenue surged 271% year on year (y/y) to Rp1.06 trillion in 2022. BLTZ’s assets reached Rp2.26 trillion, while liability amounted Rp1.81 trillion. Then the equity was Rp458.9 billion.
BLTZ said with the global and national stability is currently happening, the film market in 2023 is expected to continue to the positive side, this can be seen in the series of Hollywood and Indonesian films that will be screened in 2023.
Other big player in the cinema business in Indonesia is 21 Cineplex of PT Nusantara Sejahtera Raya.
The 21 Cineplex Group was established in 1987 by Sudwikatmono in partnership with Benny Suharman.
Whereas Blitzmegaplex was established in 2006 by Ananda Siregar in partnership with 12 other founders.***