The Hanoi Stock Exchange (HNX) decided to approve Vietnam Television Cable Corporation (VTVCab) to register to trade 45.7 million shares on the UPCoM with the code CAB.
|VTVCab has been approved to trade in UpCom |
In April 2018, while implementing its equitisation, VTVCab issued over 42 million shares for its initial public offering (IPO) at the starting price of VND140,900 ($6.13) per share. The number of shares brought to auction accounted for 47.8 per cent of VTVCab's expected charter capital after equitisation. However, VTVCab's IPO was not successful as only one investor registered a bid.
In June 2018 VTVCab officially began operating as a joint stock company with the charter capital of VND457.5 billion ($19.89 million), equivalent to 45.74 million shares registered for trading, 664,800 shares of which were sold at a preferential price to company employees. Since the equitisation, VTVCab has yet to increase its charter capital.
Regarding shareholder structure, after equitisation, Vietnam Television (VTV) is the parent company holding 98.55 per cent of VTVCab, which currently operates in the field of paid television services, wired telecommunications activities, and advertising with 35 dependent branches and 18 co-operative branches operated by VTVCab throughout the country.
Besides, VTVCab also has a number of member companies such as Viet Thanh Technology JSC (51 per cent owned), VTVLife JSC (51 per cent), VTVCab Sports Development JSC (50.1 per cent), and VTVCab Nam Dinh (39 per cent), among others.
In addition, VTVCab is currently managing and using many land plots such as the 69.7sq.m plot at 89 Giang Van Minh, 50-year land-use right for a more than 1,000sq.m plot in 12D Nguyen Tat Thanh, Viet Tri, long-term land-use rights of 93sq.m in Gieng Nam, Cam Lam, Khanh Hoa.
Regarding business results, consolidated revenue in 2018 reached VND2.949 trillion ($128.22 million) and pre-tax profit was VND74.3 billion ($3.23 million). VTVCab forecast a 2019 revenue of VND3.5 trillion ($152.17 million) and strives to reach VND4.5 trillion ($195.65 million) by 2022. Pre-tax profit in 2019 is expected to reach VND81.2 billion ($3.53 million) and reach VND282.5 billion ($12.28 million) by 2022.
Particularly in the first quarter of 2019, VTVCab achieved more than VND501 billion ($21.78 million) in revenue and over VND7.3 billion ($317,400) in after-tax profit, far from the target set for the whole year.