DFJ VinaCapital-backed entertainment group Yeah1 will trade on Ho Chi Minh City Stock Exchange on June 26 at the reference price of VND250,000 ($11), according to the latest announcement from Ho Chi Minh City Stock Exchange (HoSE).
At the price which is considered the highest reference price ever in Vietnam’s stock exchange, Yeah1’s market capitalization is pegged at approximately VND6.8 trillion ($298 million).
If it does not drop sharply on opening day, the stock of Yeah1 is set to overcome the market price of bigger players such as Sabeco at VND227,900 ($10), Vinamilk at VND168,800 ($7.4).
The entertainment group Yeah1 earlier announced that it will trade 27.4 million shares, equivalent to VND274 billion ($12 million) of charter capital HoSE. Yeah1 would be the first local entertainment company to list on the stock market.
Yeah1 also plans to sell 7.8 million shares to strategic investors and is expected to earn over $100 million. Several global investors such as Capital Asset Management, Central Group Vietnam, Probus Group and TT International have registered to buy more than 70 per cent of the shares, the company revealed.
The proceeds from the offer for sale will be used for M&A activities in Southeast Asian countries, which focus on Thailand, Philippines and Indonesia.
Yeah1 runs a series of entertainment channels including the Yeah1TV, Yeah1family, Imovietv and SCTV2, with nine subsidiaries and four indirect subsidiaries including Yeah1 Vietnam Co., Netlink Online Corporation and TNT Media Advertising.
The group was largely owned by Nguyen Anh Nhuong Tong, who holds a 41.4 per cent stake. Other investors include DFJ-VinaCapital (35.71 per cent), Ancla Assets (12.49 per cent) and the group’s CEO Dao Phuc Tri (4.37 per cent).
In 2008, DFJ VinaCapital, a venture fund of Vietnam’s leading asset manager VinaCapital invested in Yeah1, a company specializing in the field of entertainment for young people in Vietnam.
Last year, Yeah1 posted revenue of VND 851 billion ($37.2 million), after-tax profit of VND82 billion ($3.6 million), up 50 per cent year-on-year.
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