MNC Studios International, the media arm of Indonesian conglomerate MNC Group, is looking to raise $71.25 million in an initial public offering at the Indonesian Stock Exchange, the company has announced.
The company says in its prospectus that it plans to sell around 29.98 per cent of its stake, or 1.56 billion new shares, at a price range of 500-650 rupiah apiece.
It also said that the preliminary offer period will be held May 7 to March 17, while the public offering is expected to be held on May 30 to June 4, 2018. The company says its shares will be listed on the IDX by June 8.
The proceeds from the IPO will be used to fund the acquisition of new businesses, to pay off some debts and to finance the development of a Movie Land in West Java. The remaining funds will be used to set up a production house through an acquisition or joint venture with other parties.
“The acquisition or joint venture is done to raise the content production capacity in the future,” the company said.
MNC Studios’ business units include production house, advertising agency and talent management. The company is one of the country’s largest content producers, boasting up to 4,000 hours of content produced in the last year alone.
Apart from MNC Studios, MNC Group also owns another production house, Dubai-based MNC International Middle East Limited.
In the banking sector, the group has announced that it plans to acquire a local bank to be merged with MNC Bank this year.
Last year, the company said it planned to invest Rp 30 trillion ($2.13 billion) in the next five years to fund expansion in various sectors, including property, financial services and media.