[THE INVESTOR] CJ CGV Vietnam Holdings has decided to delay its plans to be listed on the main KOSPI bourse, according to industry sources on Oct. 15.
The firm had originally planned to start the demand forecast for listing on Oct. 18-19, but has delayed it to Nov. 1-2. It has also moved its subscription period, which was set to happen on Oct. 24-25, to Nov. 7-8.
The firm, a special vehicle based in the British Virgin Islands, currently operates the largest multiplex chain in Vietnam through its subsidiary CJ CGV Vietnam. It is the first BVI-based firm that plams to be listed on KOSPI.
According to sources, the delay is due to a request by the financial regulator. The Financial Supervisory Service has asked it to give domestic and foreign strategic investors more time to understand its unique structure.
Although there has been some delay, sources speculate that the company will go public successfully as it is not unusual for a foreign-based firm to receive a recommendation to slow down its process. Six out of seven SPCs based abroad were asked to delay their schedule, but they still got listed on KOSPI without much difficulty. Industry insiders expect the firm’s market cap to range from 275 billion won (US$242.86 million) to 336.1 billion won.
The Vietnam unit currently operates 46 theaters, which account for more than 50 percent market share in the country. Its sales in the first quarter reached 74.9 billion won, posting an operating profit of 7.4 billion won.
By Song Seung-hyun (email@example.com)