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CGV theater chain lists their stocks on the Korea stock Exchange.

CGV theater chain listed their stocks on the Korea stock Exchange.

CJ CGV's public subscription price was 25,000 won. Experts say that with CGV's listing on the stock market as a momentum, at home also, an era opened that a theater chain was listed on the stock market.

As the largest multiplex theater chain at home, CJ CGV is securing 24 theaters in the country and 193 screens as an affiliate of CJ Group.

In terms of annual audience number, CJ CGV held the first rank with a market share of 21.5% last year, showing a difference of two-fold with Megabox, the seond rank (10.8%).

CJ CGV plans to multiply the chain's theater numbers to 37 theaters by 2007 in the nation and is considering to advance overseas also such as China and Southeast Asia.

The company said that a stable product investment and distribution would be possible by CJ Entertainment, its investment distribution firm.


"We`ve received favorable response from market participants so far", J.H. Kim, the company`s senior vice president told reporters in a new conference



Analysts applaud CJ CGV`s dominant position in its market and its growth prospoects. Dongwon Securities Co. expects CJ CGV to continue to benefit from the nation`s fast-growing film industry in the coming years.

Since the launch of the first CGV multiplex in 1998, movie complexes in Korea have exploded with more than 10 screens at some sites. The market was estimated to be worth of 750 billion won last year.

Kim maintains that further expansion of the moviet theater market is possible, pointing out that the average Korean goes to just 2.7 films a year compared to more that five for the average American.

Dongwon Securities forecast the CJ CGV`s annual sales will grow by 23.3 percent annually over the next three years. It has a buy opinion on the stock with the six month target price of 36,100 won, 44 percent up from the offering price.

The Source : Choi Sung-ho

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