In the filing with the US Securities and Exchange Commission, VNG Limited - the largest shareholder, the legal entity controlling VNG Vietnam - has just named the foreign shareholder Tencent, Ant Group.
VNG has just announced that VNG Limited has filed an application for registration under the F-1 form with the US Securities and Exchange Commission (SEC). VNG Limited, the largest shareholder of VNG, plans to offer to the public (IPO) class A common shares on Nasdaq Global Select Market with trading code VNG.
This filing shows that VNG Limited holds a 49% stake directly in VNG Corporation, which was acquired from foreign shareholders. However, this company assesses that, based on ownership and other factors such as dispersion, voting history of the remaining shares in VNG Corporation, VNG Limited will have control over the legal entity in Vietnam. Nam just before the start of the IPO.
VNG Limited also has an agreement and control with BigV Technology Company - the second largest shareholder in VNG, after completing the IPO.
According to the filing with the SEC, the expected structure of shareholders after the IPO at the controlling company VNG includes a series of large corporations, including Tencent, Ant Group and GIC - an investment fund of the Singapore Government.
VNG Limited's outstanding shares are divided into two types, class A common shares (Class A) and class B common shares (Class B). In which, 1 class B share corresponds to 10 voting rights, while 1 class A share only corresponds to 1 voting right. These two types of shares are issued to two separate groups of shareholders, namely foreign shareholders and VNG's management.
The two founding shareholders of VNG, Mr. Le Hong Minh and Mr. Vuong Quang Khai, own 12,6 and 1,68 million Class B shares, respectively, with a voting right ratio at VNG Limited of 45% and 6 respectively. %. According to the filing, Mr. Minh and Mr. Khai are identified as a group of shareholders, with a total ownership of 51% and holding the controlling right of VNG Limited.
Meanwhile, Tencent is the largest foreign shareholder owning more than 65 million Class A shares, equivalent to 23% voting rights. Tencent's ownership includes more than 43 million shares of Tenacious Bulldog Holdings Limited, 14,5 million shares of Prosperous Prince Enterprises Limited and more than 7,5 million shares to be issued upon completion of the IPO.
Tenacious Bulldog and Prosperous Prince Enterprises are two companies registered to operate in the "tax haven" of the British Virgin Islands, having appeared in the list of major shareholders in VNG 2018. According to the filing with the SEC, VNG Limited said both These two companies are both controlled by Tencent Holdings.
GIC, through Gamvest Pte and Ant Group – formerly owned by Jack Ma, through Ant International Technologies, owns 15,2 and 7,77 million Class A shares, respectively, 5,4% and 2,8, respectively. 3,4% voting rights at VNG Limited. Seletar Invesments owns XNUMX%.
VNG was established in 2004, the original name was Vi Na Games Joint Stock Company (Vinagame), charter capital of 15 billion VND. The charter capital of this company is now more than 287 billion dong, after canceling more than 7,1 million treasury shares.
The listing of shares on the international stock exchange is one of the plans that VNG has cherished for a long time. In 2017, VNG signed a memorandum of understanding on listing on Nasdaq in the US. However, there was no progress after that.
Year 2021, Bloomberg said that VNG is considering listing shares in the US through a merger with a special purpose acquisition company (SPAC). If the above transaction takes place, VNG can be valued at 2-3 billion USD.
According to Newzoo, a company specializing in game market research, VNG is currently the leading game publisher in Vietnam, and also owns Zalo - the most popular messaging application in Vietnam with more than 75 million monthly active users. and several other applications.
In early 2023, VNG shares were registered for trading on the UPCoM market. VNZ started with a reference price of VND 240.000 in the first trading session in early January. After that, this stock quickly became the stock with the highest market value with a series of consecutive ceiling gains, matching order only 1 shares. At one point, the stock market price of VNG exceeded 100 million dong. However, profit-taking pressure then made VNZ fall below the threshold of 1,2 million dong.
In a recent month, this code has increased in price by more than 50%. However, the average trading volume is still only about 2.500 shares per session.
In the first half of the year, VNG achieved revenue of more than 4.000 billion dong and pre-tax profit of nearly 50 billion dong. VNG's main businesses include online games, connectivity, payment and financial platforms, and cloud services. The company also operates in Hong Kong, Thailand, Singapore, Philippines, Myanmar, Taiwan, Indonesia.
The segment that brings the most revenue for VNG is online game services, accounting for about 70-80% of total revenue in recent years.
Minh Son
