VNG delays IPO plan in the US to next year

Recently, after an electric car company, VNG also caused a stir among domestic and international investors when it announced information about filing documents to list VNG for the first time (IPO) on the US stock market - Nasdaq.

However, according to Reuters, this plan has been postponed and VNG may have an IPO in the US market in the first half of 2024.

VNG (VNZ) postpones IPO plan in the US (Photo TL)

One of the reasons that experts predict is the difficulties of the market when the psychology prepares for the interest rate developments maintained at a high level by the Fed. This also affects the confidence of investors in the stock market.

VNG's initial public offering plan in the US market was announced at the end of August 2023 when VNG Limited filed for an IPO in the US. VNG is expected to offer 21.7 million shares. However, there is still no specific price for this offering.

Proceeds from this IPO will be used to repay loans, invest in Fintech startups and other companies in the ecosystem.

Regarding the business situation, VNG has just ended a series of 4 quarters of losses lasting from the 4th quarter of 2022 to the end of the 1st quarter of 2023. The company has returned to profit in the 2nd quarter of 2023.

Specifically, VNG achieved revenue of VND 2,245.9 billion, gross profit of VND 1,099.3 billion. Profit after corporate income tax reached VND 50.2 billion. At the end of the second quarter, VNG's total assets reached VND 9,569.4 billion. Of which, equity accounted for the majority with VND 5,066.2 billion.

Source: https://www.congluan.vn/vng-tri-hoan-ke-hoach-ipo-o-my-sang-nam-sau-post265827.html