Vietnamese internet startup VNG files for IPO in the US

The listing will make VNG the first technology firm from Vietnam to list in the U.S.

VNG said in the filing that it planned to offer some 21.7 million shares, with the proposed price range yet to be set.

IPO proceeds will be used to pay original foreign investors who were direct shareholders of the company and repay outstanding loans, among others, the filing showed.

The company counts the likes of Chinese social media and gaming giant Tencent and Singapore state investor Temasek as shareholders.

Founded in 2004, VNG was Vietnam’s first unicorn, or startup valued at $1 billion or more, and it inked a preliminary agreement in 2017 with U.S. bourse operator Nasdaq Inc to explore an IPO.

The Ho Chi Minh City-headquartered company’s businesses include online games, payments, cloud services and Vietnam’s most popular messaging app, Zalo.

Citigroup, Morgan Stanley, UBS, and Bank of America are underwriters of the IPO, according to the filing.

VNG’s IPO follows the recent U.S listing debut by VinFast and could help to add momentum for other Southeast Asian companies seeking IPO in the U.S.

Philippine real estate company DoubleDragon Corp earlier in August announced that it was considering listing its Singapore-registered unit Hotel101 Global on the Nasdaq via a merger with a special purpose acquisition company (SPAC).

Southeast Asian used car marketplace Carsome Group was also weighing a listing in the U.S.

“While the future outcomes of these startups’ IPO plans cannot be guaranteed, the growing interest in international listings and the presence of notable players in the region indicate a promising landscape for Southeast Asian startups seeking to expand their reach and access global capital markets,” said Seth Farbman, chairman and co-founder of New York-based stock transfer agency VStock Transfer.