Cinemark IPO could net $233 mil

Texas-based exhibitor projects float of 28 mil shares

Movie theater operator Cinemark Holdings Inc. is planning to offer 28 million shares for $17-$19 each in its initial public offering, according to a regulatory filing Monday.

The company itself will offer nearly 13.89 million shares of common stock, while certain stockholders will sell more than 14.1 million shares.

The news came after the exhibitor first filed for an IPO at the beginning of February. It is looking to list its shares on the New York Stock Exchange under ticker symbol "CNK."

Assuming an IPO price of $18 per share, Plano, Texas-based Cinemark expects to reap net receipts of about $233.6 million. The company said it plans to use the money to buy back or repay debt.

Among selling stockholders in the IPO are Madison Dearborn Capital Partners, which will reduce its stake in Cinemark from 66.3% to 47.2%; Quadrangle Capital Partners, which will cut its holding from 7.1% to 5%; and Syufy Enterprises, which will reduce its stake from 10.8% to 7.7%. Chairman Lee Roy Mitchell will lower his holding in Cinemark from 14.2% to 12.3%.

The underwriters of the planned public float, led by investment bank Lehman Bros., will have the option to buy another 2.8 million shares to cover overallotments, Cinemark said in a U.S. Securities and Exchange Commission filing.

The current year has been shaping up as a big one for movie theater IPOs, with AMC Entertainment also having filed for one.

Cinema advertising firm National CineMedia went public in early February and raised $882 million, becoming the first quarter's biggest IPO.

Despite some stock market woes in the first quarter, overall volume for new issues in the U.S. exceeded the year-ago period, data tracker Dealogic said recently. According to the firm, the first quarter's 67 IPOs were worth $11.9 billion. That compared with 56 new issues worth $10.7 billion in the same period of 2006.

Cinemark operates 396 theaters with 4,488 screens in 37 U.S. states, in Canada and in various countries of Central and Latin America.
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