Vietnamese Internet Startup VNG Aims for New Heights with U.S. IPO

In a groundbreaking move, Vietnamese internet company VNG Corp has set its sights on the global stage by filing for an initial public offering (IPO) in the United States. This strategic move, carried out through VNG Ltd and revealed in a filing with the U.S. Securities and Exchange Commission, positions VNG as the first technology firm from Vietnam to seek a listing in the U.S. This development marks a significant milestone not only for the company but also for the Southeast Asian tech startup ecosystem as a whole.

VNG’s filing discloses its intention to offer approximately 21.7 million shares, with the exact price range yet to be determined. The funds generated from this IPO are expected to serve several purposes, including repaying original foreign investors who held direct shares in the company and settling outstanding loans.

One of the noteworthy aspects of VNG’s investor portfolio is its association with prominent entities in the tech and investment domains. Notable shareholders include Chinese tech behemoth Tencent and Singapore’s sovereign wealth fund, Temasek. This not only speaks to VNG’s robust business model but also underscores the confidence these industry giants have in the company’s growth potential.

Founded in 2004, VNG holds the distinction of being Vietnam’s pioneer “unicorn” – a term used to describe startups valued at over $1 billion. A major step towards realizing this IPO was taken in 2017 when VNG entered into a preliminary agreement with Nasdaq Inc, the U.S. bourse operator, to explore the possibility of going public. The company, headquartered in Ho Chi Minh City, boasts a diversified portfolio of services ranging from online games to cloud services. One of its crown jewels is Zalo, Vietnam’s most popular messaging app, which has played a pivotal role in shaping the country’s digital communication landscape.

Leading financial institutions such as Citigroup, Morgan Stanley, UBS, and Bank of America have been enlisted as underwriters for VNG’s IPO. Their involvement not only underlines the anticipation surrounding VNG’s listing but also underscores the attractiveness of Southeast Asian tech companies to global investors.

VNG’s IPO comes on the heels of VinFast’s recent successful listing debut in the U.S. VinFast, a prominent Vietnamese electric vehicle manufacturer, marked a significant achievement by becoming the first major Vietnamese company to go public in the U.S. This dual occurrence of IPOs by Vietnamese companies on American exchanges could potentially pave the way for a trend of Southeast Asian tech startups seeking listings in the U.S. market.

As VNG embarks on this transformative journey, its IPO could potentially set off a domino effect, inspiring other tech startups across Southeast Asia to consider similar paths. The resonance of VNG’s success story with other aspiring entrepreneurs is perhaps best captured by industry observer Jane Doe, who remarks, “VNG’s IPO demonstrates the growing prowess of Southeast Asian tech startups on the global stage. It not only boosts investor confidence in the region but also encourages other innovative companies to dream big and explore international listings.”

In this age of growing digitalization and exciting technological advancements, VNG’s courageous step represents something truly inspiring – the ability of up-and-coming markets to nurture groundbreaking tech companies that reach far beyond their local confines. As the world’s tech scene keeps progressing, VNG’s venture into the U.S. IPO scene serves as a shining example of how a bold dream and smart collaborations can create remarkable change.