Vietnamese internet startup VNG Ltd. has decided to postpone its US initial public offering (IPO) plans, according to an anonymous source. The decision comes in response to growing tensions between China and the US, alongside the ongoing global economic uncertainty caused by the COVID-19 pandemic. VNG Ltd., known for its popular messaging app Zalo, will reassess the situation and timing for its IPO plans in the near future.
VNG Postpones IPO Plans Amid Global Economic Uncertainty
The delay follows the mixed performances of three recently launched companies, which has led VNG to wait for improved market conditions that could potentially postpone the IPO until next year. This move demonstrates the cautious approach the company is taking to ensure a successful debut in the stock market. VNG will continue to monitor and analyze market trends and performances, aiming to select the most favorable window for its IPO launch.
Recent Turn of Events Affect IPO Expectations
The decision came about after Arm Holdings Plc and Instacart saw dips below their IPO prices, whereas Klaviyo Inc. managed to remain only 12% above its offer price as of Thursday. This trend has alarmed investors and analysts, who attribute these underperformances to factors such as market volatility and inflated valuations. Consequently, companies planning to go public are reassessing their strategies and mulling over alternative options like direct listings or special purpose acquisition companies (SPACs).
VinFast Auto’s Share Price Drop Influences VNG’s Decision
The dramatic entry and subsequent share price drop of VinFast Auto Ltd. in the US market might have played a role in VNG’s decision-making process. This volatile debut of another Vietnamese company in the international market has possibly raised concerns and prompted VNG to reevaluate the risks associated with launching an IPO in the United States. The company may be contemplating alternative strategies or waiting for market conditions to stabilize before proceeding with its plans.
VNG: Evolving and Adapting Since 2004
Originally established as Vinagame in 2004, VNG has progressed from a game publisher to a versatile company offering music sharing, video streaming, messaging, news portals, and mobile payments. Over the years, VNG has successfully diversified its product offerings and services to cater to a wider audience and market demands. The firm’s unrelenting growth and expansion showcase its adaptability and innovation, setting the stage for more exciting developments in digital entertainment and technology.
Prospects for Growth and Expansion With US Public Launch
VNG has been considering a public launch in the US since 2017. After thorough research and strategic planning, the company is now finally preparing for its highly anticipated debut in the US market. This launch is expected to reinforce its global presence and usher in new opportunities for growth and development. VNG initially aimed to offer approximately 22 million shares in its IPO but had not yet disclosed a pricing range.
Investor Expectations for IPO Valuation and Share Price
Following this announcement, potential investors eagerly anticipate further details regarding the IPO’s valuation and expected share price. The proceeds from this offering will enable VNG to expand its operations, enhance its market presence, and potentially pursue new ventures within the technology sector. However, as the company postpones its IPO plans, investors and market analysts remain watchful of the developments surrounding the situation and eagerly await a decision to proceed with the IPO once market conditions improve.
FAQs
Why has VNG decided to postpone its IPO plans?
The decision to postpone VNG’s IPO plans comes in response to growing tensions between China and the US, along with the ongoing global economic uncertainty caused by the COVID-19 pandemic, and mixed stock market performances of recently launched companies.
How long might the IPO be postponed?
There is currently no specific timeframe for the postponement, as VNG will continue to monitor and analyze market trends and performances to select the most favorable window for its IPO launch. It could potentially be delayed until next year.
What alternatives are companies like VNG considering going public?
Companies planning to go public are reassessing their strategies and considering alternative options like direct listings or special purpose acquisition companies (SPACs).
What impact did VinFast Auto’s share price drop have on VNG’s decision?
The volatile debut of VinFast Auto in the US market may have played a role in VNG’s decision-making process by raising concerns and prompting them to reevaluate the risks associated with launching an IPO in the United States.
What offerings and services does VNG currently provide?
VNG has diversified its product offerings and services, which include music sharing, video streaming, messaging, news portals, and mobile payments, in addition to its original focus on game publishing.
What are the expected benefits of VNG’s public launch in the US?
VNG’s public launch in the US is expected to reinforce its global presence and usher in new opportunities for growth and development. The proceeds from the IPO will enable VNG to expand its operations, enhance its market presence, and potentially pursue new ventures within the technology sector.
What are investor expectations for VNG’s IPO valuation and share price?
Investors eagerly anticipate further details regarding the IPO’s valuation and expected share price, which will help them evaluate the investment opportunity. As VNG postpones its IPO plans, investors and market analysts remain watchful of the developments surrounding the situation and await a decision to proceed with the IPO once market conditions improve.
First Reported on: yahoo.com
Featured Image Credit: Photo by Marcus Nguyen; Pexels; Thank you!
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