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The market debut will offer 12.5 per cent of its stake to investors, according to a presentation accessed by Dealstreetasia.
Accordingly, foreign shareholders of VNG will be required to exchange their shares for a newly-formed Cayman Islands company in order for the company to be listed in the US.
Under the proposed restructuring plan, foreign shareholders would exchange their proportionate ownership ratio (46.7 per cent) in VNG for the new business. Meanwhile, Vietnamese shareholders will have post-IPO liquidity arrangements.
“There is likely to be a Vietnam-based holding company, which plans to purchase 10 million shares of VNG or a 27.8 per cent stake. This onshore holding company will be controlled by the new company after the IPO,” noted NikkeiAsia. “Post-IPO, the new company will have a 49 per cent interest in VNG, the Vietnamese holding company will own 21.2 per cent and the remaining 29.8 per cent will belong to local investors.”
Le Hong Minh, CEO of VNG, is anticipated to have Class B ordinary shares with a 51 per cent voting right but no economic interests in the new business.
Moreover, the 47.6 per cent foreign ownership would be transferred to the new business at distribution to a paid-in capital of $8.60 per VNG share.
However, Dealstreetasia also emphasised that the material provided in the presentation is not final and that it may be subject to modification throughout the IPO process.