Vietnamese internet company VNG has recently filed for an initial public offering (IPO) in the United States.
As Vietnam’s first unicorn, or startup valued at over $1 billion, the company’s decision to go public is a significant milestone for the country’s burgeoning tech industry.
Previously, VNG signed a preliminary agreement with Nasdaq Inc in 2017 to explore the possibility of a US listing.
VNG’s US IPO filing comes on the heels of Vietnamese electric vehicle maker VinFast’s debut on the New York Stock Exchange earlier this month.
VNG is primarily known as a leading game publisher in Vietnam but has also diversified its business operations into various other sectors.
Based in Ho Chi Minh City, the company has established a significant presence in the Vietnamese market and even has an office in Thailand.
With VNG seeking to raise $150 million through the IPO, the company’s entrance into the US market could herald a new era of success and global recognition for Vietnamese tech firms.
The funds raised from the IPO will likely be used to expand the company’s operations and reach, making it an important development for the future prospects of both VNG and Vietnam’s tech industry as a whole.
Key Takeaways
- Vietnamese internet company VNG files for US IPO, aiming to raise $150 million
- VNG’s decision follows VinFast’s debut on the New York Stock Exchange
- Funds raised from the IPO are expected to support VNG’s expansion and growth.
VNG’s Background
Founding Overview
Vietnam’s VNG Corporation, headquartered in Ho Chi Minh City, is a leading technology firm in the country.
Established by Le Hong Minh, the company has grown to become one of the prevalent players in the internet sector throughout Southeast Asia. VNG’s core focus has been on online games, forging a significant presence in the gaming industry.
Product’s Impact
One of VNG’s most impactful products is Zalo, Vietnam’s most popular chat app. Zalo has revolutionised communication across the country, demonstrating the company’s ability to cater to the needs of the local market.
By continually expanding their product portfolio, VNG has established themselves as a formidable force within the internet and technology landscape in Vietnam.
IPO Process and Details
Proposed Price Range
Vietnamese internet company VNG Corp has filed for an initial public offering (IPO) in the United States via VNG Ltd, seeking to become the first tech firm from their country to be listed on the US stock market source.
The proposed price range for the IPO has not yet been disclosed; however, VNG aims to raise around $150 million through the listing, which would enable them to increase their stake in international markets source.
Source: Zalo / Alibaba
The share allocation details for the IPO have not yet been made public, and further information will likely be provided by the US Securities and Exchange Commission (SEC) as the process evolves.
This public offering is expected to attract shareholders who recognise the potential of VNG Corp, as well as those interested in the expanding
Vietnamese technology industry. By becoming a publicly listed company on the NASDAQ, VNG will be able to offer its shares to a broader base of investors, which could lead to an increase in the company’s overall value.
Following the IPO, current and potential shareholders will be able to buy and sell VNG’s shares on the US stock market, allowing for increased liquidity and opportunities for interested parties to participate in the company’s growth.
As a result, the successful completion of the IPO process could lead to a significant boost in VNG’s equity, and potentially solidify its position as a leading technology company in the region.
Current Stakeholders
VinFast
VinFast, a Vietnamese electric vehicle maker, has a connection with VNG, as both companies are making strides to expand their presence in the US market. VinFast recently made its US debut after completing a merger with the blank-check company Black Spade Acquisition Co.
It is worth noting that VNG’s move to file for a US IPO follows VinFast’s footsteps in seeking growth opportunities in the American landscape.
Tencent
Tencent, a leading Chinese technology company, is among the key stakeholders of VNG, as it has invested in the Vietnamese internet startup in the past.
This strategic partnership has allowed the two companies to collaborate on a variety of internet services and accelerate VNG’s growth. Tencent’s involvement with VNG serves as a strong backing for the success of its US IPO.
Temasek
Temasek, the Singapore state investor, has also played a role in the success of VNG. As a known investor in VNG, the company’s support has provided the Vietnamese internet startup with a significant boost to continue its growth trajectory. Temasek’s involvement raises the confidence of other potential investors in VNG’s US IPO.
UBS
UBS, a renowned Swiss investment bank, has been reported as one of the underwriters for VNG’s US IPO. VNG has made a smart move by partnering with such a prestigious banking firm for its initial public offering, which highlights the level of confidence that market players have in the Vietnamese tech firm.
In summary, key stakeholders including VinFast, Tencent, Temasek, and UBS have played crucial roles in VNG’s growth. Their support and investment confirm the bright prospects for the company as it aims to raise $150 million through a US IPO.
Business Operations
Online Gaming
VNG is a leading game publisher in Vietnam, with a strong presence in the online gaming industry. They offer a wide range of games, catering to various preferences and demographics.
VNG is also known for its strategic partnerships with popular international game developers, enabling it to provide high-quality gaming experiences for their user base.
Zalo – The Messaging App
Another significant aspect of VNG’s business operations is Zalo, a popular messaging app in Vietnam. Zalo offers a range of features, including text messaging, voice calls, and file sharing. The app has gained widespread adoption, becoming a primary communication tool for millions of users in the country.
Cloud and Payment Services
In addition to online gaming and messaging, VNG also offers cloud and payment services. These services cater to both individual users and businesses, helping them manage their digital resources and transactions effectively.
VNG’s cloud services are designed to efficiently store and process data, while their payment platform provides a secure and convenient solution for online transactions. By offering a diverse range of services, VNG helps meet the growing needs of Vietnam’s thriving internet and technology sector.
Market Analysis
SE Asia and Global Market
Vietnam’s internet firm, VNG, has filed for a US IPO, signalling its expansion ambitions in the Southeast Asian startup ecosystem and beyond.
The region has been witnessing a growth in innovative companies, with VNG in a prime position to capitalise on opportunities in both SE Asia and global markets.
As a leading game publisher and owner of Vietnam’s most popular chat app, VNG is strategically positioned to target emerging markets in SE Asia, where internet penetration and connectivity are rapidly increasing. Investment in this region’s tech companies has grown exponentially in recent years, highlighting the potential for further success as VNG enters the U.S. market.
State of the US Market
The U.S. stock market’s open stance towards foreign businesses, especially those in the tech sector, has encouraged numerous companies from diverse regions to enter Wall Street.
VNG’s IPO is expected to follow the footsteps of the Vietnamese electric car maker, Vinfast Auto Ltd., which recently completed a merger with Black Spade Acquisition Co. VNG’s market valuation will be a critical factor in determining its success as it navigates the competitive U.S. market.
With the proposed offering of nearly 22 million shares, the Vietnamese firm’s IPO is targeting a fundraising goal of $150 million; this will be crucial in bolstering the company’s financial position and fuelling its expansion into international markets.
Entering the US market also presents VNG with the opportunity to increase its brand exposure and credibility, gaining access to a broader range of investors and setting the stage for future collaboration with other global players in the tech space.
Overall, VNG’s IPO in the U.S. demonstrates the company’s ambitious growth strategy and determination to capitalise on opportunities in both Southeast Asia and the global market.
The state of the U.S. market and VNG’s market valuation will be key factors determining the success of this venture, shaping the trajectory of the company’s expansion as it navigates the competitive international startup landscape.
Future Prospects
VNG, a leading internet firm in Vietnam, has recently filed for a US IPO, indicating a significant step forward for the company. A
s a pioneer in the tech industry, VNG is poised to gain momentum and join the ranks of unicorns in Southeast Asia.
The move to list on the U.S. stock market is expected to bolster VNG’s profile and attract more investors, allowing them to develop further and expand their services.
By tapping into the American market, VNG can access a broader range of international funding and resources, facilitating its growth strategy.
Moreover, the listing of VNG is likely to encourage other Southeast Asian companies to consider going public in the United States, paving the way for a surge in tech IPOs from the region.
This trend could, in turn, enhance the global visibility and credibility of Southeast Asian tech firms, making them more attractive to international investors.
VNG’s strong presence in Vietnam’s tech scene, including its role as a leading game publisher, indicates that the company has the potential to continue scaling up and diversifying its offerings.
As the digital market grows in the region, VNG is well-positioned to capitalise on the increasing demand for online services and platform solutions.
In conclusion, VNG’s decision to file for a US IPO signals a promising future for both the company and the Southeast Asian tech industry. By gaining access to the U.S.
