Stocks set a record in doubt, will VNG achieve its ambition to list on the US stock exchange?

Reaching the highest market price in the history of Vietnam stock exchange after only 8 sessions, VNG's shares are having a favorable momentum in their ambition to list on the US stock exchange?

At the end of last week's trading session (February 10), the market price of VNZ shares of VNG Joint Stock Company reached nearly 900,000 VND/share after 8 consecutive sessions of ceiling increases, officially surpassing the peak of 847,000 VND/share in the year. 2027 of BMC shares; surpassed the peak of 665,000 VND/share of technology "big man" FPT (2007).

Thus, the market price of VNZ officially became the stock with the highest market price in the history of Vietnam stock exchange.

However, it is worth mentioning that although the stock price increased rapidly, the liquidity was very modest, only 100-300 shares were bought and sold per session, in the context of the company's continuous loss for 2 years.

Investors consider this to be an unusual phenomenon of a stock with a record price in the market.

Thanks to the "hot" increase for 8 consecutive sessions, the market capitalization of VNG increased by 4 times compared to the time of listing, reaching VND 24,000 billion, equivalent to more than USD 1 billion. As a result, CEO Le Hong Minh's assets on the stock exchange have also increased by VND 2,400 billion since the beginning of February.

However, it is worth noting that the market price of VNZ shares increased sharply in the context that VNG's business results for the fourth quarter of 2022 and accumulated for the whole year of 2022 were underperforming.

VNG's profit after tax in the fourth quarter of 2022 suffered a heavier loss than the same period last year when it was negative 547 billion dong, while the same period last year lost 267 billion dong; accumulated for the whole year of 2022, a negative profit of 1,300 billion dong, while in the same period in 2021, a loss of 70 billion dong.

Faced with doubts and speculations, VNG said that the increase in stock prices depends entirely on the supply and demand of the stock market and the tastes, needs and evaluations of investors. The Company does not have any intervention or control over the stock price movements in recent times.

The Company also said that currently, the Company's business operations are still going on as usual, without any fluctuations from the increase in the share price.

However, it is really difficult for investors to fully trust these claims.

Although the VNZ share price reached the highest level in the history of the Vietnamese stock market, compared to the price paid by a series of organizations and businesses in the world before, the current price is nearly 900,000 VND/share. is still low.

Specifically, in 2014, VNG was valued at 1 billion USD. In particular, by 2019, the Singapore Government's Temasek investment fund is valued at $2.2 billion. At this valuation, VNZ shares are priced at VND 1.8 million/share. In 2021, VNG is still highly valued when QLQ Mirae Asset Company buys shares at the price of 1.7 million VND/share.

Regarding shareholder structure, CEO Le Hong Minh is holding more than 3.5 million VNZ shares, accounting for nearly 10% of charter capital. In addition, two other major shareholders are VNG Limited and BigV.

The report notes that on November 24, 2022, VNG Limited owns 17.56 million VNZ shares, becoming the largest shareholder with the rate of 49%, BigV owns more than 1.64 million shares, corresponding to the ratio. 5.72% of total outstanding shares of VNZ.

VNG Limited is a new enterprise established on April 1, 2022, headquartered at 190 Elgin Avenue, George Town, Grand Cayman Ky1-9001, Cayman Island, Islands. While BigV was just established in August 2021, mainly operating in the field of computer programming and software production, data processing, and is headquartered in District 7, Ho Chi Minh City. Recently, the Nikkei Asia news agency named VNG in the list of the 10 most-awaited Asian companies that can launch on the international stock exchange in 2023. In which, Nikkei Asia analyzed, the move to register for trading. The recent stock exchange of VNG on Upcom (the market of unlisted public companies) is a test to test the market before officially listing on the stock exchange. In addition, Nikkei Asia said, VNG is also said to be eyeing a listing in the US. Previously, in 2017, CEO Le Hong Minh of VNG and Mr. Bob McCooey, Vice Chairman of Nasdaq, signed a preliminary agreement to accelerate the IPO process. Nasdaq is the second largest stock exchange in the world. At that time, Mr. Minh affirmed that VNG could meet the requirements to be eligible to list shares on Nasdaq. Recently, in December 2022, answering Bloomberg news, Mr. Minh said that "want to become a global technology company", so "must play in the same playing field and approach investors". the best, the most rigorous in the world.” Everyone is waiting to see if there are any unexpected developments next?

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