VNG prepares for private placement to investors

Friday, Dec 14, 2018 18:05

In the first nine months this year, VNG’s revenue reached VND3.16 trillion, equivalent to the same period last year. Pre-tax profit reached VND488 billion, down 52 per cent. — Photo cafef.vn

Online game provider VNG corporation, formerly known as Vinagame, has approved a plan to sell a maximum of 360,000 treasury shares to investors under the form of private placement.

The minimum offering price is VND1.06 million (US$45.4) per share.

VNG’s current chartered capital is more than VND345 billion, equivalent to 34.5 million shares. Based on the approved minimum offering price, VNG is valued at VND36.6 trillion, or $1.6 billion.

The shares are expected to be offered in the fourth quarter this year or in the first quarter next year. The amount of money earned from the sale, estimated to be at least VND360 billion, will be used as working capital to expand and develop domestic and foreign markets or invest in other companies in the same field.

According to the company’s financial statement, in the third quarter of this year, VNG recorded net revenue of VND1.09 trillion, slightly higher than the same period in 2017. However, due to an increase in expenses, its pre-tax profit fell to VND180 billion, down 39 per cent year-on-year.

In the first nine months this year, VNG’s revenue reached VND3.16 trillion, equivalent to the same period last year. Pre-tax profit reached VND488 billion, down 52 per cent.

By the end of September, total assets of VNG reached VND4.7 trillion, up 9.2 per cent compared with the beginning of this year. The majority of VNG’s assets are deposits at banks, worth VND2.6 trillion, of which deposits with terms lasting from three months to less than one year account for 72 per cent.

The company’s equity was VND3.9 trillion, up 11.9 per cent over the beginning of this year. Liabilities were estimated at VND803 billion, down slightly by 2.3 per cent year-on-year. — VNS

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