Vietnam's VNG delays US$150 million IPO on volatile market conditions: source
VIETNAMESE Internet company VNG has delayed a US$150 million initial public offering (IPO) until next year due to volatile market conditions, a person with direct knowledge of the matter told Reuters.
The person spoke on condition of anonymity as the information is not yet public. VNG declined to comment.
Founded in 2004, Ho Chi Minh City-headquartered VNG was Vietnam’s first unicorn – a startup valued at US$1 billion or more. The company’s businesses include online games, payments, cloud services and Vietnam’s most popular messaging app, Zalo.
Its regulatory filings for a Nasdaq listing became public in late August, and it had aimed for a debut in late September or early October, according to insiders. The decision to put the listing on hold came after the company and its advisers held early investor meetings, but ahead of a formal roadshow, the source said.
VNG is still aiming to carry out a New York listing, likely in the first half of 2024. An IPO is likely to make it the first Vietnamese technology firm to list in the US.
Financial market conditions towards new share sales remain fragile as investors prepare for interest rates to remain higher for longer in most developed economies.
Arm Holdings – which soared 25 per cent on its first trading day last week after raising nearly US$5 billion in the world’s largest IPO of 2023 – closed at US$52.16 on Thursday (Sep 21), slightly above its issue price of US$51.
New share sales around the world have slumped 34 per cent for the first nine months to mid-September compared to the same time in 2022, according to data from the London Stock Exchange.
However, several South-east Asian companies are considering listing in the US, banking on stronger investor appetite for emerging market exposure in the absence of Chinese stock offerings. REUTERS
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