Abraaj invests in Pakistani cinema chain

The company was founded in 2006 by Arif Baigmohamed and Pir Saad Ahsanuddin. They opened their first multiplex the following year and now control a network of 29 screens across 12 locations. With Abraaj’s support, Cinepax plans to add a further 80 screens and develop other entertainment-related ventures, including digital video and local filmmaking.

Cinema penetration is low in Pakistan by international standards – with one screen per 500,000 people – according to Abraaj. However, the private equity firm noted that the country’s entertainment industry has significant growth potential, underpinned by strong demographic drivers, regulatory change, and a growing number of malls that can support cinema multiplexes.

“Our investment into Cinepax demonstrates our faith in the opportunity that Pakistan’s young growing population and expanding middle class represents. This group is increasingly seeking improved entertainment options, which Cinepax is ideally positioned to provide,” Omar Lodhi, a partner responsible for Asia at Abraaj, said in a statement.

The private equity firm has been present in Pakistan since 2004 and this marks its ninth investment in the country. In 2017 alone, Abraaj has backed Islamabad Diagnostics Centre, an affordable health diagnostics provider, and acquired a majority stake in wind farm operator Jhimpir Power from energy sector investor Burj Capital.

Last year, Abraaj agreed to sell a 66.4% stake in Pakistani utility K-Electric to Shanghai Electric Power, a subsidiary of China's State Power Investment Corporation, for $1.77 billion. The deal has yet to receive regulatory approval.

• Tweet  
• Facebook  
• LinkedIn  
• Google plus  
• Save this article  
• Send to  

• Topics
• South Asia
• Media
• Expansion
• Consumer
• Pakistan
• The Abraaj Group
• Growth capital