VTVCab IPO unmarketable after scandal of cutting foreign channels

After the misplaced decision to axe a number of popular channels, VTVCab's IPO fell through

According to information published by the Hanoi Stock Exchange (HNX), as of April 10—the deadline to register for the IPO—there was only one investor interested in VTVCab’s shares. Thus, VTVCab failed to meet the conditions to organise the auction.

Previously, HNX released information about VTVcab’s IPO. Accordingly, it will offer 42.3 million shares, equalling a 47.84 per cent stake, at the initial price of VND140,900 ($6.18). With this price, VTVcab is valued at VND12.45 trillion ($546.2 million).

According to the equitisation plan, after the IPO, the state would have kept 51 per cent in the firm.

However, after issuing its IPO plan, VTVCab arbitrarily cut 22 foreign channels without giving notice to customers.

The company's move has elicited outrage among customers. As a result, the Vietnam Competition Authority (VCA), under the Ministry of Industry and Trade, asked VTVCab to explain its unreasonable decision. Besides, HBO was replaced by Box Movies, Max by HBO was replaced by Hollywood Classics, Cartoon Network was replaced by Cartoon Kids, among others.

Bui Huy Nam, director of VTVCab, said the switch was part of VTVCab’s content strategy to adapt its programmes for multiple platforms.

“We have researched our customers’ taste and received valuable feedback for our updated programmes," he said.

However, the explanation was deemed unsatisfactory by customers, thus, Nam appeared on television to apologise to customers who have not been duly notified of the change.

Nam confirmed that the channels will be replaced with a line-up including Cartoon Kids and Woman that will appear for the first time in Vietnam. He promised that the content will be attractive and meet Vietnamese people’s taste. Besides, customers will be able to watch broadcasted programmes on their mobile phones completely free of charge.

He did not mention whether VTVCab will bring back any of the channels axed.

Launched in 2012, VTVCab has become one of the country’s largest pay-TV players in terms of subscribers and service range, broadcasting 200 channels in cooperation with other television service providers. VTVCab is also involved in digital, customised, and Internet TV services.