DFJ VinaCapital-backed entertainment group Yeah1 will offer 7.8 million shares for both foreign and local firms before trading 27.4 million shares on the Ho Chi Minh City Stock Exchange (HSX).
|Yeah1 TV, one of the popular entertainment channels run by the company |
According to the plan, Yeah1 will start to put these shares on sale with the expectation to acquire $100 million in proceeds at the share price of VND300,000 ($13.17). To date, numerous foreign firms from the UK, Singapore, Japan, and Thailand registered to buy 70 per cent of the offered shares. Some of the largest names lining up for a stake are Capital Asset Management, Probus Group, and TT International Limited, among others.
Yeah1 will spend the acquired money on expanding its operations via investments, M&A deals, as well as partnerships.
|This year, Yeah1 targets earning VND1.6 trillion ($70.2 million) in net revenue and VND172 billion ($7.55 million) in net profit, signifying increases of 90 and 109 per cent. |
Recently, HSX released that it had received Yeah1’s application to trade 27.37 million shares, equivalent to VND274 billion ($12 million) of charter capital, making it the first local entertainment company to list on the stock market. The first transaction session is expected to be in June.
The entertainment group previously approved plans to raise capital from VND238 billion ($10.4 million) to VND312.8 billion ($13.7 million) and raise the foreign ownership ratio to 100 per cent after listing the shares on the stock exchange.
As of the end of 2017, the group was owned by Nguyen Anh Nhuong, chairman of the Board of Directors (41.4 per cent), DFJ VinaCapital (35.71 per cent), Ancla Assets Ltd. (12.49 per cent), and the group’s CEO Dao Phuc Tri (4.37 per cent).
Established in September 2006, Yeah1 specialises in entertainment for young people in Vietnam and runs a series of entertainment channels including Yeah1TV, Yeah1family, Imovietv, and SCTV2, with nine subsidiaries and four indirect subsidiaries, including Yeah1 Vietnam Co., Netlink Online Corporation, and TNT Media Advertising. In 2008, DFJ VinaCapital, a venture fund of Vietnam’s leading asset manager VinaCapital invested $1.4 million in Yeah1.
Yeah1 has partner relations with numerous giants, including Samsung, Unilever, Coca-Cola, Heineken, and Viettel. In addition, the group expanded its operations to Thailand, Indonesia, and the Philippines.