Cinema operator Vue weighs strategic options including potential IPO

Sept 17 (Reuters) - European cinema operator Vue said on Thursday it was exploring strategic options including a potential stock market listing or a sale as it looks to capitalize on a record-breaking summer at the box office.

The Financial Times reported earlier on Thursday that Vue was considering a listing in London and aiming to begin preparations before the end of 2026.

A company spokesperson said Rothschild had been appointed to help explore all strategic options but added that no decision had been made.

A flotation would provide a rare boost for London's struggling IPO market, which has faced a prolonged slowdown in new listings and a steady stream of companies opting to list overseas or pursue alternative sources of funding.

Several high-profile companies, including software group Visma, travel operator Loveholidays and Superdrug owner AS Watson, have delayed or shelved IPO plans amid volatile market conditions and concerns over investor demand.

Founded by CEO Tim Richards in 1999 and rebranded as Vue in 2002, the company has grown into one of Europe's largest cinema operators, with around 220 cinemas across eight countries including the UK, Germany and Italy.

The business was taken over by its lenders as part of a post-pandemic rescue deal after repeated COVID-19 lockdowns disrupted cinema attendance and strained finances, forcing operators across the sector to restructure balance sheets and cut costs.

A strong slate of blockbuster films this year, including "Spider-Man: Brand New Day" and "The Odyssey", have helped boost summer box-office collections, underpinning a recovery in cinema attendance across key European markets.

"Cinema is not just back, it is back for good and Vue is leading from the front," a Vue spokesperson said in an emailed statement to Reuters.

(Reporting by Atharva Singh in Bengaluru; Editing by Devika Syamnath)