Yeah1 (YEG) issues shares to raise an additional 548 billion, more than half used to pay debt

Yeah1 mobilized 548 billion VND, more than half was used to pay off debt

As a well-known unit in media activities, Yeah1 Group (code: YEG) is also the producer of the program "Anh trai vu ngan cong gai" which attracts a lot of attention from audiences nationwide. Recently, this unit also attracted the attention of investors when it planned to raise capital through issuing shares.

Specifically, Yeah1 will issue 54.8 million shares, equivalent to 40% of outstanding shares, to existing shareholders. Charter capital will increase from VND1,370 billion to over VND1,900 billion.

Yeah1 (YEG) issued shares to raise 548 billion, more than half of which was used to pay off debt (Photo TL)

The par value of the shares is VND10,000/share. Thus, the company will earn about VND548 billion if the issuance is successful. The implementation time is in the third or fourth quarter of this year after being approved by the State Securities Commission.

Notably, according to the plan to use capital from this issuance, Yeah1 will use 100 billion to pay for the loan to buy shares of Netlink Vietnam Technology Media JSC, 127 billion to repay the loan to buy shares of Yeah1 Edigital JSC, 62.4 billion to pay off a bank loan. The remaining amount will be used to supplement business activities and contribute capital to 1Production LLC.

Looking at this capital mobilization plan, it can be seen that Yeah1 has used nearly 290 billion VND to pay off loans, equivalent to more than half of the mobilized amount.

How is Yeah1 doing business?

Regarding business activities, in the first half of 2024, Yeah1 recorded revenue of VND 284 billion, nearly double compared to the same period. Profit after tax also reached VND 21.5 billion, 2.3 times higher than the previous year.

Notably, financial revenue increased 3.6 times to VND77 billion. Meanwhile, financial expenses increased by only 5.2%, equivalent to VND10.8 billion. Sales expenses and business management expenses nearly doubled to VND67.5 billion.

In Yeah1's asset structure at the end of the second quarter of 2024, total assets were recorded at VND 2,005 billion. Of which, up to 70% of assets were in the form of receivables. Most of which were short-term receivables, accounting for VND 1,010 billion. In addition, the company only had more than VND 7.2 billion in cash left.

However, according to the capital structure, Yeah1 also has nearly 1,400 billion VND from equity. However, unreasonable asset allocation and too large receivables are problems for Yeah1.

Source: https://www.congluan.vn/yeah1-yeg-phat-hanh-co-phieu-huy-dong-them-548-ty-qua-nua-dung-de-tra-no-post315871.html