Vietnam Animation Company hopes to capture IPO audience

By DNVN, Dam Tuan   April 20, 2016 | 05:19 pm GMT+7

The Vietnam Animation Single Member Limited Company will offer 589,804 shares on April 27 on the Hanoi Stock Exchange (HNX), equivalent to 11 percent of charter capital after divestment.

Pursuant to the Prime Minister’s request for state-owned enterprises (SOEs) to restructure and divest state ownership, the company will offer its own shares in a public auction on the HNX with a starting price of VND10,300 per share.

vietnam-animation-company-hopes-to-capture-ipo-audience

The Vietnam Animation Company will hold its initial public offering on April 27. Photo by Vietnam Animation Company

The total state capital in the cartoon company was over VND53.7 billion ($2.4 million) as of December 31, 2014.

Charter capital after divestment is expected to remain the same and the state will retain a 51 percent stake, equivalent to 2.7 million shares. Strategic investors will own 36 percent and staff will be given the option of owning the remaining 2 percent stake.

Production at the company has been stable over the last few years, and sponsorship has made up from 70 to 80 percent of total revenue. The cartoon company also makes up to VND3.4 billion (about $153,000) per year from leasing real estate.

Since 2014, the Vietnam Animation Company has strengthened marketing and business cooperation with film distributors, and the company’s revenue have increased from VND8.7 billion in 2012-2013 to VND11.5 billion in 2014 and VND12.8 billion in 2015. The company expects sales to reach from VND15.8 billion to VND16.8 billion from 2016-2018.

The Vietnam Animation Company was established in 1959, and was formerly known as the Vietnam Animation Studio under the management of the Vietnam Cinema Department. It is the only professional Vietnamese animation producer, and has the task of creating cartoons that educate, develop and teach children morality.

The country's largest state-owned film studio, the Vietnam Feature Film Studio, conducted its IPO on April 4 after 20 years of losses, and sold 80 percent of its shares.

 
 
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