Tech firm VNG to list at $360M valuation

By Minh Son December 30, 2022 | 09:49 pm PT

VNG Data Center is located in Tan Thuan Export Processing Zone, District 7, Ho Chi Minh City. Photo courtesy of VNG

Tech company VNG, once considered a “unicorn,” is set to list on the Unlisted Public Company Market on January 5 at a valuation of over VND8.6 trillion (US$360 million).

The VNZ share will be listed at VND240,000 and allowed a trading band of 40%, which will be reduced to the normal 10% from the second session onward.

The $360 million valuation equates to only a third of the $1 billion it was valued at in 2014 in the World Start-up Report.

The valuation is also lower than in 2015 when VNG sold nearly 300,000 shares to a strategic shareholder at VND666,000 per share.

VNG was established in 2004 as Vinagame with a charter capital of VND15 billion, which has now risen to VND358 billion.

Founder and chairman Le Hong Minh owns a 9.8% stake.

The company has operations in Hong Kong, Thailand, Singapore, the Philippines, Myanmar, Taiwan, and Indonesia.

Its main businesses are online games, communications and media, fintech, and cloud services, with games accounting for 70% of its revenues.

It reported revenues of over VND5.76 trillion for the first nine months of 2022, but has been making losses since last year, mostly because of its investments in Zion and Tiki.

Zion, which operates e-wallet ZaloPay, posted a loss of over VND1.2 trillion last year.