The Hanoitimes - VNG sets the schedule for the sale of treasury shares in the fourth quarter of 2018 or the first quarter in 2019, stated the company in a statement.
By setting a minimum selling price of VND1.06 million (US$45.41) apiece for a maximum of 360,000 treasury shares, Vietnam’s leading IT firm VNG is valued at VND36.6 trillion (US$1.6 billion).
The valuation would make VNG one of the unicorns (valued over US$1 billion) in Southeast Asia.
On December 7, shareholders of VNG approved the plan of selling treasury shares to investors via private placements.
The specific price shall be decided by the company’s board of directors, including the price adjustment to be suitable to market conditions, provided that it is not lower than the minimum price of VND1.06 million (US$45.41) per share.
VNG’s current charter capital stands at VND345 billion (US$14.78 million), equivalent to 34.5 million shares.
VNG sets the schedule for the sale of treasury shares in the fourth quarter of 2018 or the first quarter in 2019.
Fund raised from the sales of treasury shares shall be used as working capital to expand local and overseas markets and to contribute capital, invest, in or acquire shares of companies which have similar business activities in order to grow the company’s market share and standing in the internet industry, said VNG.
In the third quarter of 2018, VNG reported revenue of VND1.1 trillion (US$46.93 million) with the gross profit margin of 55%, equivalent to the corresponding period in 2017. However, due to large losses incurred in the period, VNG’s pre-tax profit decreased by 40% year-on-year to VND180 billion (US$7.68 million).
VNG posted pre-tax profit in the first nine months of 2018 at nearly VND500 billion (US$21.34 million), down 52% year-on-year, according to the firm’s quarterly consolidated financial statement.
In 2018, VNG set revenue target of VND5 trillion (US$218.7 million), up 17.3% year on year, and aims for an after-tax profit of VND549 billion (US$24 million), significantly lower than the figure of VND938 billion (US$40.01 million) recorded in 2017.
In the coming time, the company will diversify its business lines, prioritizing in four main fields of e-wallet, smart phones development, setting up the company's ecosystem for its products, and e-commerce.
Along with traditional digital content development, VNG will focus its resources on developing new technologies, including artificial intelligence, machine learning, big data, virtual reality, and e-payment.