VNG Corporation (VNG) registered to list on the US Nasdaq stock exchange

VNG submits listing application to US stock exchange - Nasdaq

VNG Corporation (Code VNZ) has just announced that VNG Limited, the parent company owning a large amount of VNZ shares, has submitted a registration application under form F-1 to the US Securities and Exchange Commission (SEC).

VNG Limited is expected to make an initial public offering (IPO) of its Class A common stock on the Nasdaq Global Select Market. The company's trading symbol on the exchange is expected to be VNG.

The underwriters for VNG include Citigroup Global Markets Inc., Morgan Stanley & Co. LLC, UBS Securities LLC and BofA Securities, Inc. The transaction size and IPO price range have not yet been announced.

VNG Corporation (VNZ) plans to list on the US stock exchange - Nasdaq (Photo TL)

As for VNG Limited, this unit used to hold 61.1% of VNG Corporation (VNZ) shares. However, in July and August, VNG Limited agreed to sell 3.48 million VNZ shares to BigV Technology Corporation and reduced its ownership ratio to only 49%.

VNG Limited is headquartered in the Cayman Islands, the company has 2 internal stakeholders at VNG including General Director - Mr. Le Hong Minh (owns 12.27% of capital) and Permanent Deputy General Director - Mr. Vuong Quang Khai (owns 4.99% of capital).

Continuous losses, just escaped losses in the second quarter of 2023

The context of VNG's listing application comes when this unit has continuously recorded losses for many quarters. Specifically, VNG has been losing money from the first quarter of 2022 to the end of the first quarter of 2023. In these business periods, the peak loss fell in the fourth quarter of 2022 with a negative VND 547.4 billion. By the first quarter of 2023, VNG's revenue reached VND 1,852.5 billion but the loss after tax had decreased to only negative VND 90.1 billion.

VNG's loss situation just stopped in the second quarter of 2023. Revenue in the second quarter of 2023 reached VND 2,245.9 billion, an increase of more than 11% over the same period. Gross profit reached VND 1,099.3 billion. Gross profit margin reached 48.9%.

Financial revenue in the period reached 24.4 billion VND, down half compared to the same period. Meanwhile, financial expenses increased 11 times, from 7.5 billion to 83.7 billion VND. Business activities at affiliated companies also recorded a loss of up to 22.1 billion VND.

VNG's selling expenses and administrative expenses in the second quarter of 2023 were relatively large, at VND554.3 billion and VND344.4 billion, respectively. The company's after-tax profit reached VND50.2 billion. Although this is a large number, compared to the scale of revenue and previous profits. Therefore, it can be considered that in the second quarter, VNG just barely "escaped losses".

VNZ shares have just been "transferred" to new shareholders and have increased rapidly.

Right before the news of VNG filing for listing on the US stock exchange Nasdaq, the company’s shareholder structure has undergone strong fluctuations. Along with that, the stock price has also been adjusted accordingly.

In particular, BigV Technology shareholders had planned to buy back 7.1 million treasury shares from VNG. This transaction is expected to increase BigV Technology's ownership ratio from 5.7% to 30.5% of charter capital.

However, VNG later stopped the plan to sell treasury shares and canceled 7.1 million treasury shares. The company's charter capital also decreased from 358.44 billion VND to only 287.36 billion VND. After this "failed" purchase, BigV Technology also registered to buy back VNZ shares twice to increase its ownership ratio.

On July 28, 2023, BigV Technology purchased 1,741,524 VNZ shares, increasing its ownership ratio from 5.72% to 11.78%. On August 3, 2023, BigV Technology continued to purchase an additional 1,741,524 VNZ shares to increase its ownership ratio to 17.84%. After the above transactions, VNZ shares have continuously increased in price, from the bottom of VND 700,000/share on August 2, 2023 to VND 940,400/share on August 10, 2023. Up to now, in the trading session on August 24, 2023, VNZ is priced at VND 1,213,000/share.

Source: https://www.congluan.vn/ctcp-vng-vng-dang-ky-niem-yet-tren-san-nasdaq-cua-my-post261776.html