Major shareholder in tech unicorn VNG plans to sell 3.48 mln shares
VNG Limited, the largest shareholder in Vietnamese tech giant VNG Corporation, registered to sell 3,483,048 VNZ shares to reduce its ownership from 61.12% to nearly 49%.
The transaction is expected to be carried out from July 25 to August 15, 2023.
At the annual general meeting of shareholders held July 7, VNG said it will suspend the offering of over 7.1 million treasury shares to the BigV Technology Corporation. The corporation will also reduce its charter capital from VND358.44 billion ($15.12 million) to VND287.36 billion ($12.12 million).
After the sale was approved last year but not implemented, the company carefully reconsidered the issue and came up with a new plan for 2023, it said.
In mid-December 2022, VNG had agreed to sell over 7.1 million treasury shares to BigV Technology Corporation for VND177,881 ($7.5) per share, which would account for 24.7% of the firm’s shares in circulation. The sale was to take place this year.
The offering price of $7.5 per share meant proceeds of VND1.26 trillion ($53.37 million). The transfer of these shares would be restricted for a year after the transaction was completed. If the purchase was finalized, BigV would increase its VNG stake to 30.5%, or more than 8.7 million shares.
VNG has said that the losses incurred by ZaloPay was anticipated and a long-term investment. With foundation products, VNG focuses on quality, technology, and new customer base looking for revenue opportunities.
Zion JSC, owner of ZaloPay, recorded losses of VND30.7 billion ($1.3 million), VND180.6 billion ($7.6 million), VND344.9 billion ($14.6 million), VND685.98 billion ($28.99 million), VND1.23 trillion ($51.9 million) and VND1.31 trillion ($55.4 million) in 2017, 2018, 2019, 2020, 2021 and 2022, respectively.
VNG has targeted revenues of VND9.28 trillion ($394.5 million) and a loss of VND572 billion ($24.3 million) in 2023.
This year, it will continue to invest in key business segments like video games, advertising, e-wallets and products that use artificial intelligence. It has proposed that no dividend is paid from the accumulated profit of more than VND5 trillion ($212.5 million) it held at the end of last year.
VNG reported a loss of VND90 billion ($3.84 million) in the first quarter of this year, compared to VND130 billion ($5.54 million) last year. Its first quarter net revenue reached VND1.85 trillion ($78.93 million), up 11% year-on-year, according to the company's consolidated Q1 financial statement.
As of March 31, 2023, VNG's total assets were valued at VND8.98 trillion ($382.48 million), up 0.8% compared to the beginning of the year; while liabilities increased by 4% to VND3.95 trillion ($168.46 million).
The company had posted a loss of VND1.53 trillion ($65.4 million) in 2022.
Registered on the unlisted public company market UPCoM as VNZ, the company attributed the loss to additional expenses related to taxes, intangible fixed assets and provisions for financial investments. It was the fourth largest loss reported by a listed company in Vietnam in 2022, after Vietnam Airlines, Vietjet, and HAGL Agrico.
Founded in 2004 by Vietnamese businessman Le Hong Minh, 45 now, VNG is a leading technology services provider in Vietnam. It was officially valued at $1 billion in the World Startup Report, becoming the first unicorn in Vietnam.
The corporation in January named Vo Sy Nhan as its new chairman, replacing Le Hong Minh. Minh remains its general director.
On the UpCOM, VNZ shares closed Friday at VND736,600 ($31.14).
- Read More
Bamboo Capital at 13: deep roots, towering shoots
Vietnamese firm Bamboo Capital began its journey in 2011 as a small but promising startup. Thirteen years later, it has grown into a powerful multi-sector conglomerate.
Bamboo Capital - Wed, November 13, 2024 | 8:58 am GMT+7
Vietnam media giant YeaH1 profits handsomely from TV shows, divestments
YeaH1 Group, a leading media and entertainment company in Vietnam, has reported an impressive profit earned in the first nine months of this year as also surging stock prices.
Companies - Wed, November 13, 2024 | 8:39 am GMT+7
Korea’s digital twin firm The PICT expands Asian presence with Vietnam branch
The PICT, a South Korean AI-driven digital twin and immersive content company, has established GEO Impact, its new branch in Ho Chi Minh City, Vietnam’s southern economic hub.
Companies - Wed, November 13, 2024 | 8:14 am GMT+7
Vietnam GDP can grow 6.7% or more in 2025: HDBank exec
Vietnam’s GDP growth in 2025 could reach 6.7% or more, says Tran Hoai Nam, deputy general director of Ho Chi Minh City Development Joint Stock Commercial Bank (HDBank).
Companies - Wed, November 13, 2024 | 7:26 am GMT+7
Indonesia calls on US investors to support sustainable growth
Indonesian President Prabowo Subianto has urged U.S. business leaders to prioritize environmental, social, and governance (ESG) principles when investing in his country.
Southeast Asia - Wed, November 13, 2024 | 12:46 am GMT+7
Grab raises annual revenue forecast
Singapore's Grab Holdings has raised its forecast for fiscal 2024 revenue, as the firm anticipates robust growth in its food delivery and ride-hailing business services during the busy holiday season.
Southeast Asia - Wed, November 13, 2024 | 12:44 am GMT+7
Thai baht lags behind peers on concerns over central bank's autonomy
Thailand’s currency has fallen the most among Asian peers on investor concerns that the independence of the country’s central bank is being further eroded.
Southeast Asia - Wed, November 13, 2024 | 12:42 am GMT+7
Vietnam’s 2025 GDP growth target set at 6.5-7%
The National Assembly, Vietnam's legislature, on Tuesday assigned the government to work for a GDP growth rate of 6.5-7% next year.
Economy - Tue, November 12, 2024 | 11:31 pm GMT+7
Murphy Oil spuds oil well in Vietnam, plans another in Q4/2024
Murphy Oil Corporation has started spudding activities at the Hai Su Vang -1X exploration well offshore southern Vietnam, the U.S.-headquartered oil firm says in its Q3/2024 performance review.
Energy - Tue, November 12, 2024 | 9:24 pm GMT+7
Shinhan Bank Vietnam leads syndicated term loan facility for hydropower project
Shinhan Bank Vietnam has been the lead arranger for a syndicated term loan facility to finance the Tra Khuc 2 hydropower project in the central Vietnam province of Quang Ngai.
Banking - Tue, November 12, 2024 | 5:45 pm GMT+7
Vietnam sees rising household affluence: report
Driven by sustained economic growth, Vietnam has seen a rising number of affluent households in recent years which has a great impact on consumer trends in the country, according to a market research report.
Economy - Tue, November 12, 2024 | 5:03 pm GMT+7
Canada seeks business opportunities in ASEAN
The Canada-ASEAN Business council (CABC) recently held a conference to help Canadian enterprises seek business opportunities in ASEAN.
Southeast Asia - Tue, November 12, 2024 | 4:54 pm GMT+7
Vietnam cement firms struggle with real estate, export challenges
Cement businesses in Vietnam have continued to face significant difficulties, with several companies reporting losses in the third quarter of 2024, primarily due to a sluggish domestic real estate market and challenges in exports.
Companies - Tue, November 12, 2024 | 4:44 pm GMT+7
Thailand strives to meet water demand in Eastern Economic Corridor
Demand for more raw water to serve business growth in the Eastern Economic Corridor (EEC) of Thailand, particularly data centers and cloud services, has prompted a new study on joint water management from two suppliers in the country.
Southeast Asia - Tue, November 12, 2024 | 3:52 pm GMT+7
VinFast best-selling vehicle brand in Vietnam
VinFast, the electric vehicle (EV) arm of Vietnam's private conglomerate Vingroup, delivered over 51,000 units in Vietnam in the first 10 months of this year, making it the best-selling brand in the country.
Companies - Tue, November 12, 2024 | 3:32 pm GMT+7
Gluten-free cassava flour cake project wins startup contest in HCMC
Cusami, a project in Ho Chi Minh City’s Cu Chi district that specializes in creating different types of cakes with cassava flour, has won first prize at the 2024 green startup ideas/project competition.
Companies - Tue, November 12, 2024 | 3:10 pm GMT+7