Curtain rises on Cinema City debut

Soon every Pole will be able to profit from the success of the latest Hollywood blockbusters, as Cinema City International, Central and Eastern Europe's biggest multiplex owner, intends to float around 15.66 million shares.

"We are going to make our debut on the Warsaw Stock Exchange because of the very good prospects for the Polish capital market, and because Poland is our most important market, last year generating more than 43 percent of consolidated revenue," says Moshe J Greidinger, CEO of Cinema City.

Ten million shares will come from a new issue and 5.66 million will be sold by current shareholders. If investors show significant interest, the company may issue another 2.35 million existing shares.

Currently Cinema City is the leader in the region's multiplex-cinema market, boasting 58 multiplexes in the CEE region and Israel. Last year its income came to EUR 108.2 (zł.410.9) million.

The firm's main revenue source is ticket sales. It also earns on movie distribution, DVD rentals and real-estate investments. The proceeds from the share issue are intended for new capital expenditures. In three years the company plans to increase its market share from 38 percent to 50 percent.

"Our investment plan presumes opening about 25 new multiplexes by the end of 2008, 10 of which will be in Poland," explains Greidinger. The total cost of investments in the next few years is estimated at about EUR 88 (zł.334.4) million.