The Hanoi Stock Exchange (HNX) has approved the listing of 45.7 million shares of Viet Nam Television Cable Corporation (VTVCab) on the Unlisted Public Company Market (UPCoM) with the code CAB.

The first trading day is scheduled for September 6. With a starting price of VND140,900 (US$6.13) per share, VTVCab's market capitalisation will exceed VND6.4 trillion ($274 million) on the first day of trading.

In April 2018, while implementing equitisation, VTVCab issued more than 42 million shares for its initial public offering (IPO) at the starting price of VND140,900 per share.

The number of shares brought to auction accounted for 47.8 per cent of VTVCab's expected charter capital after equitisation. However, VTVCab's IPO was not successful as only one investor registered a bid.

In June 2018 VTVCab began operating as a joint stock company with charter capital of VND457.5 billion, equivalent to 45.74 million shares registered for trading, 664,800 shares of which were sold at a preferential price to company employees. Since equitisation, VTVCab has yet to increase its charter capital.

Regarding shareholder structure, after equitisation, Viet Nam Television (VTV) is the parent company holding 98.55 per cent of VTVCab, which currently operates in paid television services, wired telecommunications activities and advertising.

VTVCab also has a number of member companies such as Viet Thanh Technology JSC (51 per cent owned), VTVLife JSC (51 per cent), VTVCab Sports Development JSC (50.1 per cent), and VTVCab Nam Dinh (39 per cent), among others.

VTVCab is currently managing and using many land plots such as the 69.7-square-metre plot at 89 Giang Van Minh, a 50-year land-use right for a more than 1,000-square-metre plot in 12D Nguyen Tat Thanh, Viet Tri City in the northern province of Phu Tho, and long-term land-use rights of a 93-square-metre plot in the southern province of Khanh Hoa.

Regarding business results, consolidated revenue in 2018 reached VND2.949 trillion and pre-tax profit was VND74.3 billion. VTVCab forecast 2019 revenue of VND3.5 trillion and strives to reach VND4.5 trillion by 2022. Pre-tax profit in 2019 is expected to reach VND81.2 billion and VND282.5 billion by 2022.

In the first quarter of 2019, VTVCab had more than VND501 billion in revenue and over VND7.3 billion in after-tax profit, far from the target for the year. — VNS