Vietnam-based internet startup VNG Ltd. has decided to postpone its plans for a US initial public offering, according to a person familiar with the matter.
(Bloomberg) — Vietnam-based internet startup VNG Ltd. has decided to postpone its plans for a US initial public offering, according to a person familiar with the matter.
After seeing mixed performances by a trio of newly public companies this month, VNG was advised to hold off until market demand improves, said the person, who asked not to be identified because the information was private. The IPO could be postponed until next year, the person said.
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A representative for VNG declined to comment.
VNG’s decision follows Arm Holdings Plc, the semiconductor designer owned by SoftBank Group Corp., and grocery delivery company Instacart both briefly falling below their IPO prices. Marketing and data automation software provider Klaviyo Inc., the best-performing of September’s three major New York listings, was only 12% above its offer price on Thursday after rising as much as 32% in its trading debut on Wednesday.
The Vietnamese company’s listing postponement also comes after VinFast Auto Ltd.’s dramatic arrival in the US market, which saw the electric vehicle maker’s shares surge 504% over six days in the aftermath of its merger with a blank-check firm. Shares have erased much of the surge as the loss-making EV upstart has struggled to expand beyond its home country.
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Formerly known as Vinagame, VNG had its start in 2004 as a game publisher. It develops and publishes its own titles as well as local versions of international hits, and has gradually expanded to a wide range of services, such as music sharing, video streaming, messaging, a news portal and mobile payments. It has been exploring going public in the US since at least 2017.
The gaming and messaging provider had planned to sell about 22 million shares but hadn’t disclosed a price range yet for the IPO.
–With assistance from David Morris and Fion Li.
(Updates with context on Vietnamese firms’ US listings in fifth paragraph.)
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