VNG Corp. Eyes Nasdaq IPO, AI Expansion Amid Takeover Speculation
Vietnam's leading tech company, VNG Corp., has been the subject of speculation regarding a potential 51% takeover following an initial public offering (IPO) on the NASDAQ. However, as of December 2023, there is no reliable information confirming such an event.
VNG, known for its online gaming, messenger services like Zalo, and digital content, has been considering an IPO in the US to raise international capital and fuel growth. However, the company has not yet filed an official IPO prospectus with the US Securities and Exchange Commission (SEC). Meanwhile, VNG's game royalties are a significant expense, amounting to VND 784 billion (USD 32 million) in the first half of 2023.
Backed by tech giants Tencent and Alibaba's Ant Group, VNG aims to list on the Nasdaq. The company is also developing a large language model for content creation, translation, and chatbots, despite facing challenges from digital censorship in Vietnam. VNG's chat app, Zalo, is more popular in Vietnam than Facebook and offers a translation function. The company plans to launch a ChatGPT-like AI service tailored for Vietnamese speakers.
VNG, with its 34 subsidiaries including fintech, data centers, and popular services like Zing music and Zalo, plans to integrate AI into all its products. The company will add a generative AI feature to Zalo, enabling users to write emails and find answers to queries. VNG's founder, Le Hong Minh, envisions the company as a 'global technology company' based in Vietnam. Despite the buzz around a potential takeover, no official confirmation exists as of December 2023.
