VNG CEO assures staff US listing will happen, just not yet

VNG data center in Ho Chi Minh City / Photo credit: VNG 

In an internal memo seen by Tech in Asia, VNG Corporation CEO Le Hong Minh addressed staff on the company’s decision to postpone its highly anticipated IPO in the US. According to Le, the reason was investor readiness – or the lack thereof – for an Asia tech IPO.

“I want VNG to IPO in a strong position with a good chance to price appreciation post-IPO,” he said. “Despite a challenging macro environment in 2023, all of our businesses are progressing well and we are seeing major opportunities in our global efforts and AI.”

Le said that VNG has met with over 120 global investors over the past year to share its story and that most investors are taking a “wait and see” approach. “I have strong conviction that we will be able to go back to the market in the very near future,” he added.

The company filed for its listing in August on the Nasdaq Global Select market. The listing was slated to be done through the firm’s Cayman Islands-incorporated VNG Limited.

A previous Tech in Asia analysis noted that VNG’s growth has slowed down in recent years and that its fintech business has become a drag on profits.

VNG was founded in 2004 as VinaGame. Gaming still contributes about 70% to 80% of the company’s total revenue. The remaining comes from social media (Zalo), financial services (ZaloPay), and cloud services (VNG Cloud).

See also: Vietnam’s first tech unicorn VNG set for IPO. Here’s what you need to know

Note: This article was written with the help of AI. Don’t worry, humans were still involved in producing this story.