Vietnam's digital stalwart VNG has reportedly shelved its imminent initial public offering (IPO) plans for the US, attributing its decision to the current tepid market response to recent tech listings.
“After seeing generally mixed performances by a trio of newly public companies this month, VNG was advised to hold off until market demand improves,” an inside source disclosed to Bloomberg.
While VNG remained reticent on the matter, the strategic pause mirrors a broader caution in the tech IPO space. Notably, both Arm Holdings Plc, the SoftBank Corporation affiliate, and delivery service Instacart experienced their stocks trading beneath their IPO valuations.
VNG, which debuted as Vinagame in 2004, has transitioned from its initial gaming focus to become a diversified digital powerhouse in Vietnam, offering an array of services from video streaming and news portals to mobile payments. The company has contemplated a US listing since 2017.
Before this revision in plans, the gaming and communications conglomerate had intimated an intention to offload approximately 22 million shares in its proposed IPO, though pricing details remained under wraps.
In 2021, VNG was contemplating a US stock market debut via a merger with a special purpose acquisition company . Should the transaction materialise, VNG's valuation could oscillate between $2 billion and $3 billion.
VNG also owns Zalo, Vietnam’s most widely used messaging application, boasting over 75 million active monthly users, among other digital ventures.
In early 2023, VNG shares commenced trading on the Unlisted Public Company Market in Vietnam. Debuting at VND240,000 (around $10.13) per share in January, they quickly ascended, marking VNG as the highest valued stock on the exchange.
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