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Vietnam’s IT firm VNG plans US$15.6-million share issuance in first quarter 2019

Updated at Tuesday, 08 Jan 2019, 10:00
The Hanoitimes - Proceeds raised from the sales of treasury shares will be used as working capital to expand local and overseas markets.
Vietnam’s IT leading firm VNG is planning to issue shares worth VND360 billion (US$15.6 million) through private placement in the first quarter of 2019, DealStreetAsia reported. 
 
Illustrative photo.
Illustrative photo.
Following the plan, the shares in subject would be issued to both domestic and foreign investors with a maximum of 360,000 treasury shares at the offering price of at least VND1 million (US$43.5) per share. 

The valuation would make VNG one of the unicorns (valued over US$1 billion) in Southeast Asia.

Proceeds raised from the sales of treasury shares will 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.

Last October, VNG and Singapore’s state investment firm Temasek signed a memorandum of understanding to jointly seek investment opportunities, including technology services such as could computing. 

In 2018, VNG set revenue target of VND5 trillion (US$218.7 million), up 17.3% year on year, and aimed 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. 
Ngoc Mai
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