Founders of Vietnamese listed digital media firm Yeah1 have completed the sale of a combined 19.3 per cent stake to an unnamed strategic investor, according to regulatory filings.
Specifically, its chairman Nguyen Anh Nhuong Tong pared his shares from 41.66 per cent to 25.52 per cent while CEO Dao Phuc Tri trimmed his ownership in the company from 8.3 per cent to 5.1 per cent.
The price of the transactions was not disclosed, but local stock trading portals said the disposal was placed at 50,000 dong ($2.15) per share. That meant the investor paid nearly 300 billion dong ($12.9 million) for the stake.
DFJ VinaCapital, a partnership fund between Vietnam-based asset management firm VinaCapital and American venture capital firm Draper Fisher Jurvetson and an early investor in Yeah1, held 9.74 per cent of the multichannel network company by the end of 2019. Ancla Assets Ltd, an entity associated with VinaCapital founder Don Lam, owned another 10.93 per cent.
The latest fundraising is understood to pave the way for Yeah1 to set up its planned celebrity platform through the establishment of Your Entertainment Platform JSC (in which Yeah1 will own 99.98 per cent) and Yeah1 Superstar (a 50.98 per cent subsidiary).
Prior to that, Yeah1 acquired US-based Youtube network startup ScaleLab.
Profitable at its stock market debut in June 2018, Yeah1 started to witness extended losses in 2019. As of the end of last year, the company reported an accumulated loss of 292 billion dong.
It listed at the price of 350,000 dong apiece, seeking a valuation of $400 million. However, the price has since then plunged and dipped at 35,000 dong in January 2020 before rallying to 50,000 dong currently.
Yeah1’s performance suffered a major setback when Youtube terminated its content-hosting agreement in March 2019.
Meanwhile, to the majority of investors on the stock market who still favour traditional businesses with large asset components, tech stocks like Yeah1 are considered to be associated with low liquidity and free float ratio.