Vietnam-based internet startup VNG Ltd. has decided to postpone its plans for a US initial public offering, according to a person familiar with the matter.
After seeing generally mixed performances by a trio of newly public companies this month, VNG was advised to hold off until market demand improves, said the person who asked not to be identified because the information was private. The IPO could be postponed until next year, the person said.
A representative for VNG didn’t immediately respond to a request for comment.
VNG’s decision follows Arm Holdings Plc, the semiconductor designer owned by SoftBank Group Corp., and grocery delivery company Instacart both briefly falling below their IPO prices. Marketing and data automation software provider Klaviyo Inc., the best-performing of September’s three major New York listings, was only 12% above its offer price on Thursday after rising as much as 32% in its trading debut on Wednesday.
Formerly known as Vinagame, VNG had its start in 2004 as a game publisher. It develops and publishes its own titles as well as local versions of international hits, and has gradually expanded to a wide range of services, such as music sharing, video streaming, messaging, a news portal and mobile payments. It has been exploring going public in the US since at least 2017.
The gaming and messaging provider had planned to sell about 22 million shares but hadn’t disclosed a price range yet for the IPO.
--With assistance from David Morris.
