VNG launched Upcom on January 5 at a price of 240,000 VND/share, valued at less than 350 million USD

According to information from the Hanoi Stock Exchange (HNX), VNG JSC registered to trade 35.8 million VNZ shares on Upcom from January 5, 2023, of which 28.7 million shares are outstanding. and 7.1 million treasury shares.

The reference price on the first trading day of VNZ shares is 240,000 VND/share. At this price, VNG has a market capitalization of VND8,592 billion (equivalent to less than $350 million, much lower than VNG’s previous billion-dollar valuation).

According to the information disclosure, as of November 28, 2022, VNG has 3 major shareholders, namely VNG Limited (headquartered in Cayman Islands) holding 49% of charter capital (61.1% of outstanding shares); BigV Technology JSC holds 4.6% of charter capital (5.7% of outstanding shares) and Mr. Le Hong Minh holds 9.8% of charter capital (12.3% of outstanding shares).

VNG’s 2022 Extraordinary General Meeting of Shareholders approved the sale of all 7.1 million treasury shares to BigV Technology Joint Stock Company (BigV) at the price of VND 177,881/share. If VNG successfully sells treasury shares to BigV, BigV will increase its ownership rate in VNG to 24.42% of charter capital.

In the first 9 months of 2022, VNG achieved VND 5,764 billion in revenue, of which the largest contributors were online game services (VND 4,056 billion), online advertising services (VND 933 billion) and price services. added value on telecommunications networks and the Internet (Zalopay and VNG Clouds, VND683 billion). Music service and song copyright (ZingMP3) only account for a small proportion of 21 billion VND.

In the first 9 months of this year, VNG’s after-tax loss was 764 billion dong, the parent company’s after-tax loss was 419.3 billion dong. The cause of the loss came from the investment in Zion JSC (the owner of the ZaloPay e-wallet) and Tiki JSC.

On the separate financial statements, as of September 30, 2022, VNG recorded an investment in subsidiaries and associates of VND 4,442.2 billion, an increase of 73.9% compared to the beginning of the year.

In which, the investment in Zion JSC accounted for the largest proportion with the investment value of VND 2,561.5 billion and the provisioning balance of VND 2,269.3 billion.

VNG was valued at 1 billion USD in 2014, becoming the first unicorn in Vietnam – according to World Startup Report. In 2019, VNG was valued at USD 2.2 billion by the Singapore government’s Temasek investment fund (equivalent to VND 1.8 million/share). In 2021, Mirae Asset Fund Management Company will buy shares of VNG at the price of 1.7 million VND/share.