VNG’s shares skyrocket in unusual way

The share price of Vietnam tech major VNG Corporation has skyrocketed on the domestic bourse in an unusual fashion.

At the time of writing, it’s priced at around 1 million dong (US$43.58) per share, which is about five times higher than its original listing price of 240,000 dong in January.

As Tech in Asia preciously reported, VNG began trading last month on the Unlisted Public Company Market (UPCoM), which is the board for firms not yet listed on the Hanoi Stock Exchange.

However, no transactions had transpired until February, when VNG’s share price suddenly shot up to make it the most expensive stock ever in Vietnam. Only about 7,000 shares have been traded so far.

This means VNG’s valuation, currently at US$1.2 billion, is back to the “unicorn” mark.

The development has been raising eyebrows among industry watchers, with the company reaffirming to regulators that it does not interfere with or control the price movement of its stock.

The performance of VNG’s stock has been in contrast to its recent financial performance.

In the first nine months of 2022, VNG incurred a loss of nearly US$33 million, for which it cited growing investments in its subsidiaries and affiliates. It also reported a loss of US$23 million in Q4 2022.

Tech in Asia has also taken a closer look at VNG’s prospectus and financial statements in this premium story to figure out why the company has been struggling to go beyond gaming amid a global downturn in tech.

Currency converted from VND to US dollar: US$1 = 23,450 VND

Editing: Arpit Nayak