In the upcoming IPO, VTVcab will offer 42.29 million shares, equivalent to 47.8% of the firm’s charter capital. With the starting price of VND140,900 (US$6.19), VTVcab is valued at VND12.3 trillion (US$540 million).
VTVcab schedules IPO in April
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Under the equitization plan, VTVcab will have its charter capital of VND884 billion (US$38.8 million) after the IPO, while the state ownership at the firm will reduce to 52.2%. VTVcab also seeks a strategic investor to buy at least 10% of the firm’s charter capital.
Strategic investors of VTVcab must be in operation for at least 5 years, with minimum charter capital of VND1 trillion (US$43.9 million). Additionally, the company must stay profitable for the last three years and have no recorded accumulated loss.
The state audit on May 2017 announced VTVcab’s value after equitization at VND4.278 trillion (US$188 million), VND279 billion (US$12.2 million) higher than the number provided by an independent audit and taking the audited value of state capital at VTVcab to VND2.6 trillion (US$114 million).
VTVcab, wholly-owned by VTV, has become one of the country’s largest pay-TV players in terms of subscribers and the service range nationwide.
Launched in 2012, it broadcasts 200 channels in cooperation with other television service providers. VTVcab is also involved in digital, customized and Internet TV services.
Meanwhile, SCTV, a wholly state-owned joint venture between VTV and Saigon Tourist Corporation, is also under the government’s divestment plan. Accordingly, VTV and Saigon Tourist Corporation will sell 12.5% each in SCTV, reducing state ownership at the firm to 75% per the Deputy Prime Minister Vuong Dinh Hue’s instruction.
In 2016, VTVcab’s revenue reached VND2 trillion (US$87.8 million), up 11.3% year on year, while the company’s after-tax profit was estimated at VND68.5 billion (US$3 million), increasing 5% over the last year preriod, according to the company’s financial report.
By the end of 2016, VTVcab’s payable debt is estimated at VND1.9 trillion (US$83.4 million), including short-term debt of VND1.3 trillion (US$57 trillion), which exceeds the company’s short-term asset value for more than VND500 billion (US$22 million), causing concern over VTVcab’s liquidity.
