VTVCab cancels IPO after few investors show interest
The Vietnam Television Cable Corporation (VTVCab) will cancel its initial public offering (IPO) on April 17 as only one investor registered to attend the auction by the end of April 10, 2018 – the deadline for investors to sign up for the IPO.
The Vietnam Television Cable Corporation (VTVCab) will cancel its initial public offering (IPO) on April 17 as only one investor registered to attend the auction by the end of April 10, 2018 (Photo VTVCab)Hanoi (VNS/VNA) - The Vietnam Television Cable Corporation (VTVCab) will cancel its initial public offering (IPO) on April 17 as only one investor registered to attend the auction by the end of April 10, 2018 – the deadline for investors to sign up for the IPO.
The Hanoi Stock Exchange (HNX) said on April 12 that according to regulations, VTVCab is eligible to cancel an IPO as scheduled.
At the end of March, the State-owned television company announced it would put more than 42.2 million shares or 47.84 percent of the firm’s capital up for sale in an IPO at the starting price of 140,900 VND (6.26 USD) per share.
If the IPO of VTVCab were successful, the Government could earn nearly 6 trillion VND (264.2 million USD) from the sale and the value of the company would reach 12.4 trillion VND.
Under its equitisation plan, which was approved by the Prime Minister in January 2016, VTV Cab will have charter capital of 884 billion VND (39.3 million USD), with the Government reducing its ownership to 51 percent, or more than 45 million shares.
The total value of the company as of December 31, 2015, was more than 7.9 trillion VND (351 million USD), with the Government holding a stake of more than 80 percent.
More than 1 million shares (1.16 percent of the capital) will be sold to the pay TV provider’s current employees at cheap prices.
According to local media, the IPO of VTVCab has proven unattractive to investors as the starting price level for the share auction was considered higher than the firm’s actual performance and business conditions merited.
During the 2014-16 period, VTVCab posted steady growth in its total revenue, but its post-tax profit showed some decline.
In addition, VTVCab has not become a dominant player in the local television market as its revenue and profit are being outpaced by the Saigon Cable Television (SCTV).
In addition, VTVCab has recently sparked a controversy in the pay TV market after it removed a number of “hot” channels from its package and replaced them with others considered less popular to Vietnamese viewers.
The incident is expected to reduce the number of VTVCab customers as a number of them have already switched to other pay-TV providers. –VNS/VNA
You should also see
Millions of children in Vietnam protected by vaccination over 40 years: UN agencies
Millions of children in Vietnam have been protected by immunisation over the past 40 years, said the World Health Organisation (WHO) and UNICEF offices in Vietnam on April 25 when they mark the World Immunisation Week from April 24-30.
See more
Business
Labels on foods exported to Singapore must be accurate: Trade counselor
Counsellor Cao Xuan Thang, head of the Vietnam Trade Office in Singapore, has advised Vietnamese exporters to pay attention to labeling pre-packaged food products to ensure their credibility and image of businesses when exporting to the Singaporean market.
Business
April 25 gold bullion auction cancelled
The State Bank of Vietnam (SBV) has announced that it canceled the gold bullion auction scheduled for April 25 morning as only one business submitted its bidding form.
Business
High airfares create chance for short-distance trips for Reunification Day holiday
Due to a hike of air ticket prices for domestic flights, Vietnamese tourists are turning to short-distance trips for the upcoming National Reunification Day (April 30) and May Day (May 1) holidays.
Business
Phu Yen, Ninh Thuan attractive to energy project developers
The south-central coastal provinces of Phu Yen and Ninh Thuan have become attractive destinations for investors operating in the energy industry thanks to great potential for renewable energy development.
Business
Petrovietnam posts 9-billion-USD revenue in Q1
The Vietnam National Oil and Gas Group (Petrovietnam) saw total estimated revenue of 231 trillion VND (9 billion USD) from production and business activities in the first quarter of 2024, exceeding the set quarterly plan by 33% and up 19% year-on-year, head a conference held by the group recently.
