VNG takes historic step to be the first Vietnamese tech company to file an IPO in the US
Vietnam's VNG is making waves with its audacious move to become the first Vietnamese tech firm to go public in the U.S.
The company has filed for an initial public offering (IPO) on the Nasdaq via VNG Ltd., as confirmed by a U.S. Securities and Exchange Commission filing.
Although it hasn't disclosed the proposed price range for its nearly 22 million shares, insiders suggest the IPO aims to raise around $150 million, with a potential launch as early as September.
Founded in 2004 as Vinagame, VNG has grown from a game publisher into Vietnam's first unicorn, diversifying its offerings to encompass music sharing, video streaming, messaging, a news portal, and mobile payments. A notable highlight is its messaging app, Zalo, which has surpassed Facebook Messenger to become Vietnam's preferred chat platform, boasting an impressive 75 million monthly active users.
Backed by heavyweight investors such as Tencent and Singapore's Temasek, VNG has its sights set on global expansion, leveraging its gaming division as the vanguard while seeking to boost revenue through artificial intelligence and cloud computing products.
Leading financial institutions, including Citigroup, Morgan Stanley, UBS, and Bank of America, are spearheading VNG's IPO. After the listing, the company's founders will retain a controlling 51% of the voting power. Tencent Holdings will hold 23% of the voting rights, while Singapore's sovereign wealth fund GIC Pte will wield 5.4% of votes.
VNG's entry into the U.S. IPO scene adds momentum to an already warming market, with several high-profile firms preparing to go public. Chip designer Arm Holdings is gearing up for a potentially record-breaking September IPO, while companies like Instacart, Klaviyo, and Birkenstock are lining up to file their IPOs.
But, VNG's journey isn't without its challenges. The company reported a pretax loss of 614 billion dong ($25.6 million) for the first half of 2023. Despite this setback, VNG's bold venture into the U.S. IPO landscape signifies a future filled with potential and global expansion.
