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VTVCab to call off IPO on April 17
Ngoc Thuy 11:57, 2018/04/13
VTVCab, a unit of state-owned broadcasting agency Vietnam Television, is cancelling its initial public offering (IPO) on April 17 after only one investor registered to attend the auction, according to an announcement by the Hanoi Stock Exchange.
In the proposed IPO, which was announced last month, VTVcab expected to offload 42.29 million shares, or 47.8% stake in the firm. At a starting price of VND140,900 (US$6.23) per share, the government was hoping to raise at least VND6 trillion (US$264 million) from the IPO. 
 
VTVCab to call off IPO on April 17.
VTVCab to call off IPO on April 17.
Notably, the starting price of VND140,900 (US$6.23) apiece is equivalent to an evaluation of VTVcab at VND12.4 trillion (US$545.6 million). 

Following the company's business plan, revenue in the next 4 years will be around VND3 - 4.5 trillion (US$132 - 198 million), equivalent to profit of under VND110 billion (US$4.8 million). By 2020, it is expected that revenue to reach VND4.5 trillion (US$198 million), while pre-tax profit is of VND283 billion (US$12.4 million). 

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.

According to local media reports, the IPO of VTVCab was deemed unattractive by investors due to what was seen as a higher-than-merited starting price, given the firm's recent performance. The company recently had drew the ire of its customers after deleting a few popular channels, leading some to switch to its competitors. 

VTVCab's IPO has been beset by problems. In 2015, Vietnam Television (VTV) proposed to divest its interest in three pay TV units - VTVCab, SCTV and K+ - to improve operational efficiency and maximize shareholder value. 

However, the privatization process got delayed due to difficulties in asset valuation. Recently, the Prime Minister agreed to extend the deadline for VTVCab's IPO to June 30, 2018. 

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.
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