Due to unstable market conditions, Vietnamese internet startup VNG Ltd has postponed a $150 million U.S. initial public offering (IPO) until next year, a person with direct knowledge of the situation told Reuters.
As the information is still private, the speaker agreed to speak on the condition of anonymity. VNG opted against commenting.
VNG, with its headquarters in Ho Chi Minh City, was Vietnam’s first unicorn—a business with a valuation of $1 billion or more—and was founded in 2004. Online gaming, payments, cloud services, and Zalo, the most well-known messaging app in Vietnam, are among the company’s businesses.
According to individuals who previously spoke to Reuters, it had intended for a debut in late September or early October when its regulatory papers for a Nasdaq listing became public in late August.
After the business and its advisors attended preliminary investor meetings but before a formal roadshow, the decision to postpone the listing was made, the person claimed.
They continued, “VNG still intends to execute a New York listing, probably in the first half of 2024.” It will probably become the first Vietnamese technology company to list in the US through an IPO.
The deal’s suspension was initially reported by Bloomberg News earlier on Friday.
The financial market environment for fresh share sales is still precarious as investors get ready for interest rates in most developed economies to stay higher for longer.
Arm Holdings finished at $52.16 on Thursday, just over its issue price of $51, after rising 25% on its first trading day last week after generating nearly $5 billion in the largest IPO in history.
According to figures from the London Stock Exchange, new share sales globally declined 34% for the first nine months to mid-September compared to the same period in 2022.
However, a number of Southeast Asian businesses are thinking about going public in the United States, counting on increased investor demand for exposure to emerging markets in the absence of Chinese stock offerings.
Formerly known as Vinagame, VNG, a five-person start-up that became Vietnam’s first tech unicorn and the country’s largest homegrown digital ecosystem in 2014, has been enmeshed in consumers’ daily lives. According to Newzoo and F&S, VNG is the top mobile game producer in Vietnam with plans to go global. Zalo, the country’s top messaging app, has 75 million active monthly users and is run by VNG. Since at least 2017, it has been considering going public in the US.
