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Nov

Maximum price of Cinema City share: PLN 20

 

  • Subscription for Cinema City International N.V. (“Cinema City”) shares in the retail offering opens tomorrow. Orders will be accepted until Thursday, 30th November 2006.
  • Retail investors will subscribe for the shares at the maximum price of PLN 20 per share. The final price and number of offered shares will be set by the book building process currently conducted among institutional investors and announced on 30th November 2006.
  • The total number of offered shares is 15.66m, of which 10m are new issue shares.


Public Offering Schedule

Subscription orders for shares in Cinema City, the largest operator of multiplex cinemas in Central and Eastern Europe and Israel, will be accepted from Retail Investors in the period from November 24th to November 30th at the branches of Biuro Maklerskie Banku BPH S.A. and Centralny Dom Maklerski Pekao S.A. located throughout Poland.

Planned schedule of the Public Offering presents the below table*:

November 20th-30th Book-building among Institutional Investors
November 23rd Determination of the Maximum Price
November 24th-30th Placement of subscription orders by Retail Investors
November 30th Determination of the Share Price and the final number of Offered Shares
December 1st and 4th Placement of subscription orders by Institutional Investors
December 4th Allotment date

   
* the final dates may change

Subscription orders placed by Retail Investors will be accepted at the maximum price, which was set on PLN 20. The final price of the shares offered to retail investors will not be higher than the maximum price.

A book-building process is carried out up to November 30th among Institutional Investors in Poland and abroad. The price of offered shares will be established based on the results of the process. Institutional Investors will place subscription orders for the Company shares at 1st and 4th December.

Structure of the Offering

The Offering will comprise new and existing Cinema City shares in a total number of over 15.66m, of which:

  • 10m will be new issue shares

 

  • 5.66m will be existing shares sold by the existing shareholders, including Israel Theatres Limited (company controlled by the Greidinger family - founders of Cinema City).


In addition, in order to cover additional investors' demand, up to 2,35m additional shares may be sold by existing shareholders as part of the overallotment option.

The final number of offered shares is expected on November 30th.

The Public Offering in Poland is addressed to both Retail and Institutional Investors. Retail Investors may be allotted 20% of the total number of shares in the Offering, however, this percentage is subject to change.

Assuming all offered shares (15,66m) are sold new shareholders will hold almost 31% of the Company shares. The controlling stake of almost 70% will be retained by IT. International Theatres Ltd. (controlled by the Greidinger family) currently holding over 86% of Cinema City shares.

Issue Objectives of Cinema City

Cinema City intends to strengthen its position as the largest multiplex operator in Central and Eastern Europe and in Israel.

The Company’s plans until the end of 2008 envisage capital expenditure of EUR 88m. The Company intends to open 25 new multiplex cinemas, including 21 multiplexes in its existing markets (10 in Poland, 2 in Israel, 1 in Hungary and 4 in each of Bulgaria and the Czech Republic) and 4 in Romania.