Yeah1 announced the issuance of over 54.8 million shares (equivalent to 40% of its currently listed shares) to enhance its capital capacity, implement capital contribution plans, restructure debt, and supplement working capital.
Yeah1 Group Joint Stock Company (stock code: YEG) has just announced a plan to offer 54.8 million shares to existing shareholders, equivalent to 40% of the outstanding shares. Accordingly, shareholders owning 100 shares will be entitled to purchase 40 newly issued shares.
The offering price is 10,000 VND per share, 9% higher than the market price on the stock exchange. If the offering is completed, Yeah1 expects to raise 548 billion VND. Accordingly, the company's charter capital will increase from 1,370 billion VND to 1,918 billion VND.
The expected release time is in the third or fourth quarter of 2024, after approval from the State Securities Commission.
The company stated that the funds raised will be used to enhance capital capacity, implement equity investment plans or partnerships to establish new business segments, conduct M&A , restructure debt, and supplement working capital.
Specifically, Yeah1 will contribute capital to 1Production Co., Ltd. (211 billion VND), repay loans used to purchase shares in Yeah1 Edigital Joint Stock Company (127 billion VND) and Netlink Vietnam Technology Media Joint Stock Company (100 billion VND). In addition, the company will repay its loan to VietinBank (62.4 billion VND), with the remaining amount used to supplement capital for content production activities.
At the 2024 annual meeting, in response to a shareholder's question about whether increasing charter capital could reduce profitability, Ms. Le Phuong Thao, Chairwoman of the Board of Directors, stated that 2023-2024 was a golden period to invest in fundamental resources such as human resources, studios, and technology... with the aim of serving the high-quality content production segment.
She believes this is the right direction, as most competitors in the industry have yet to focus on investing in the platform, instead allocating capital to individual projects. In the future, when the economy recovers , these preparations will help the company record higher profits, thereby improving profitability and bringing greater value to shareholders.
YEG's share price is currently at 9,150 VND, a slight decrease from the reference price. Prior to this, the stock experienced a nine-day losing streak before breaking the pattern at the beginning of the week. YEG has lost 22.8% compared to its price at the beginning of the year (11,850 VND). With over 137 million shares listed on the HoSE, its market capitalization is approximately 1,251 billion VND.
For the first half of the year, the producers of "Brother Overcoming a Thousand Obstacles" recorded net revenue of nearly 281 billion VND, almost double the 142 billion VND recorded in the first six months of last year. Pre-tax and after-tax profits reached 24.7 billion VND and 20.5 billion VND respectively, representing increases of 4.8 times and 2.3 times compared to the same period last year.
According to Yeah1's management, the improved business results in the first half of this year were mainly due to a 136% increase in revenue from advertising and media consulting activities compared to the same period last year.
This year, Yeah1 aims for revenue of 800 - 1,100 billion VND, an increase of 94-167% compared to 2023. The company expects after-tax profit of 65 - 105 billion VND, an increase of more than 145-296% compared to last year.
As of the end of June 2024, Yeah1's total assets reached VND 2,005 billion, an increase of VND 145 billion compared to the beginning of the year. The company had over VND 1,057 billion in short-term assets, the majority of which were short-term receivables.
The group recorded total liabilities of nearly VND 607 billion, an increase of VND 130 billion compared to the beginning of the year. Short-term loans accounted for the largest proportion of the company's debt structure, exceeding VND 199 billion. Shareholder equity currently stands at VND 1,398 billion, an increase of VND 15 billion compared to the beginning of the period.
Source: https://baodautu.vn/yeah1-sap-phat-hanh-548-trieu-co-phieu-rieng-le-d224618.html
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