DatVietVAC set for IPO to unlock growth capital

DatVietVAC set for IPO to unlock growth capital

DatVietVAC, the producer of Anh Trai Say Hi, has announced its market debut with an offering of 11.15 million shares at VND54,800 ($2.11) each.

The 'Anh trai say hi' concert organised by DatVietVAC in Ho Chi Minh City in April. Photo: DatVietVAC

The initial public offering (IPO) was unveiled on July 8. Upon completion, the company's charter capital will rise to VND1.11 trillion ($42.69 million), with an expected market capitalisation of approximately $240 million. All shares are expected to list on the Ho Chi Minh City Stock Exchange within 2026.

Given the nature of DatVietVAC's value-generating assets – which are intangible, including intellectual property rights over scripts, music, recordings, and exclusive artist contracts – the group faces challenges in accessing long-term credit from the traditional banking system, which typically requires tangible collateral.

Accordingly, the IPO and subsequent listing are intended to increase DatVietVAC’s transparency, credibility and brand value, creating conditions for the company to improve its ability to access a more diverse range of funding sources supporting its growth strategy.

In addition, the additional capital will help DatVietVAC strengthen its financial capacity, with a focus on financial restructuring and debt repayment to optimise net profit margins for its core subsidiaries. Specifically, VND536.9 billion ($20.65 million) will be allocated as additional capital contribution to DatViet VAC Media, supporting its two subsidiaries Dat Viet Media and TKL, while VND 74 billion ($2.85 million) will be allocated as additional capital contribution to DatViet VAC Entertainment to strengthen the capacity of its two content production units, Vie Channel and Dong Tay Promotion.

Intellectual property assets, music copyrights, and scripts remain relatively new and abstract concepts to Vietnam’s financial investment community. Bringing the company to the public market, subjecting it to strict disclosure requirements and independent audit, with a 15-year audit history by KPMG, represents the strongest commitment to the seriousness of its business model.

At the issue price of VND54,800 ($2.11) per share, the valuation corresponds to a pre-issuance 2026 forward price-to-earnings (P/E) ratio of approximately 13x. This is considered a relatively attractive valuation compared with the average forward P/E of the entertainment sector in Southeast Asia and Asia, with an average of 18.1x and a median of 16.1x. Accordingly, DatVietVAC’s IPO valuation is being offered at a discount of approximately 28 per cent to the regional average.

DatVietVAC Group Holdings was established in 2019 to operate under a holding company model, with the group’s operating foundation inherited from member companies that have continuously developed for more than three decades since 1993. Starting from its position as an outdoor advertising company, DatVietVAC has shifted its strategy to become a major player dominating the content sector through a closed, vertically integrated ecosystem model.

This model operates through direct ownership of subsidiaries representing two main business segments: the Content segment, managed by DatViet VAC Entertainment, and the Media Services segment, managed by DatViet VAC Media.

For 2026, DatVietVAC has set a revenue target of VND3.38 trillion ($130 million) and net profit after tax of VND420 billion ($16.15 million), representing growth of 11 per cent compared with VND379 billion ($14.58 million) in 2025. Projected return on equity is 34.7 per cent.

DatVietVAC’s 2026-2030 strategy targets average annual growth of 15 per cent, aiming to reach VND5 trillion ($192.31 million) in revenue and VND780 billion ($30 million) in profit by 2030. The main driver of this target comes from the strategic pivot towards multi-layered intellectual property monetisation and the development of the Fandom Economy.

VIR