Quvat-backed Blitzmegaplex targets Indonesia IPO

Brata Perdana, a director at Blitzmegaplex, said the company wanted to grow from 10 to 25 cinemas over the next three years. He didn't specify how much would be raised, but building 15 new multiplexes is expected to cost around $35 million, Reuters reported.

Indonesia's 240 million population is served by around 700 cinema screens - compared to more than 42,000 for the US and Canada's combined 350 million population - and 70% are in the Greater Jakarta region. Blitzmegaplex is the second-largest of only two significant domestic operators, after 21 Cineplex Group, although the Lippo Group plans to launch its first cinema this year.

21 Cineplex, which claims to have 685 screens in 137 theaters nationwide, enjoyed a virtual monopoly until the arrival of Blitz Megaplex and other smaller competitors. This was due to restrictions on foreign investment in the space and the patronage of former President Suharto, whose cousin controlled 21 Cineplex.

Blitzmegaplex was a greenfield investment by Quvat in 2006 and it took six years to reach profitability as management struggled to handle the scale of the roll-out. The company also ran into trouble not of its own making in 2011 when the 21 Cineplex affiliate responsible for importing foreign movies into Indonesia had its license temporarily suspended due to tax problems.

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• Topics
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• Quvat Management
• Media
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