Vietnam’s online gaming firm VNG eyes IPO in US
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It is now in a race with budget carrier VietJet to become the first Vietnamese company to list abroad. Vietnamese online gaming and messaging firm VNG Corp said Tuesday that it has signed a preliminary agreement with U.S. bourse operator Nasdaq Inc to explore an initial public offering, a move that could make it the first Southeast Asian firm to be listed overseas.
The agreement, which could see Nasdaq help VNG prepare for the listing, was signed on the sidelines of Vietnam Prime Minister Nguyen Xuan Phuc’s visit to the U.S.
Founded in 2004, VNG provides online games, music streaming and messaging applications. Its statement did not disclose details about the IPO plans.
The company was not immediately available for comment.
In his Tuesday meeting with Robert H. McCooey Jr, vice president of Nasdaq, PM Phuc hailed the agreement between Nasdag and VNG. According to a government report, he said that Vietnam’s government always encourages the cooperation between local firms and U.S. partners.
In a report on Sunday, VietJet Aviation Joint Stock, which controls almost half of Vietnam’s domestic airline market, is in talks to become the first company in the Southeast Asian nation to list its shares in an overseas stock exchange.
“We’ve been approached by some foreign stock exchanges including London, Hong Kong and Singapore, which expressed their interest in our stock,” Nguyen Thi Phuong Thao, VietJet’s founder and chief executive officer, was quoted as saying. She added that she will meet exchange officials in New York later this week.
VietJet reportedly received shareholder approval in April to boost its foreign ownership limit to 49 percent from 30 percent. The increase will need to be approved by the government because foreign ownership in the industry is currently capped at 30 percent.
“We don’t want to hide our hope to become the first Vietnamese company to list shares overseas,” Thao reportedly said.
Questions & Answers
Q.Why has VNG Corp signed a preliminary agreement with Nasdaq Inc?
Why has VNG Corp signed a preliminary agreement with Nasdaq Inc?
VNG Corp signed the agreement to explore an initial public offering (IPO) on the US bourse. This move could potentially make it the first Southeast Asian firm to be listed overseas, as it races with VietJet to be the first Vietnamese company to list abroad.
Q.What services does VNG Corp provide?
What services does VNG Corp provide?
VNG Corp, founded in 2004, offers a range of services including online games, music streaming, and messaging applications. The company is primarily known as an online gaming and messaging firm.
Q.What is VietJet's current progress regarding an overseas listing?
What is VietJet's current progress regarding an overseas listing?
VietJet has reportedly received shareholder approval to increase its foreign ownership limit to 49 percent from 30 percent, which would require government approval. The company is in talks with foreign stock exchanges including London, Hong Kong, and Singapore, and its CEO will meet officials in New York.