Vietnam’s VNG mulls $15.6m private placement in first quarter of 2019

Vietnamese technology major VNG Corporation is mulling a private placement to raise around VND360 billion ($15.6 million) in the first quarter of 2019.

The shares will be issued to both domestic and overseas investors, the Ho Chi Minh City-based company said in a disclosure. It will sell a maximum of 360,000 treasury shares at the offering price of at least VND1 million ($43.5) apiece.

Proceeds from the private placement will be used to expand VNG’s presence in local and overseas markets as well as for future investments.

Starting off as a gaming business, VNG has now expanded into payments, social media and cloud computing. It is Vietnam’s only unicorn, a moniker used for a privately-held startup with a valuation of $1 billion or more.

In 2018, VNG had signed a memorandum of understanding with Singapore state investor Temasek Holdings to jointly seek investment opportunities in internet services such as cloud computing.

DEALSTREETASIA had earlier reported that VNG would consider a private placement ahead of its planned IPO on Nasdaq. In May 2017, the firm signed an MoU to list on the US exchange, which could make it the first Vietnamese firm to conduct an overseas IPO.

In October last year, VNG made details of its foreign ownership, which stands at 44.26 per cent, public for the first time. Singapore sovereign fund GIC holds an 8.14 per cent stake, while Goldman Sachs owns 3.55 per cent. DEALSTREETASIA had learnt that Goldman Sachs had intended to exit VNG.

Meanwhile, two other institutional investors, Tenacious Bulldog Holdings Limited and Prosperous Prince Enterprises Limited, own some 29 per cent of VNG. These are rumoured to be entities related to Chinese giant Tencent, even as both Tencent and VNG have never confirmed the investment.

Tencent president Martin Lau is a member of VNG’s board of directors.

Also Read:

Goldman Sachs said to mull exiting investment in Vietnam’s VNG

Vietnam’s VNG considers private placement prior to Nasdaq IPO: Sources

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.