Vietnamese internet startup VNG Corp, known for its music streaming platform Zing MP3, has filed for an initial public offering (IPO) in the US, positioning itself as Vietnam’s first unicorn to be publicly listed in the country. The company aims to raise $150 million through the IPO, according to sources. VNG developed Zing MP3 in 2007 and currently has 28.7 million monthly active users. The app features music from major labels like Sony and Universal. VNG also operates a mobile game publishing subsidiary, messaging application Zalo with 75 million monthly active users, and mobile payment app ZaloPay.
VNG’s IPO filing disclosed that the company restricts the amount and duration of advertisements on the Zing MP3 platform to provide users with an uninterrupted music experience. However, this approach may reduce advertisers’ willingness to promote on the platform. VNG emphasized that a significant portion of its music offerings are properly licensed, but acknowledged that it may not have obtained all necessary copyright licenses for some content. The company warned of potential copyright infringement allegations and asserted that it has been subject to claims of infringement by third parties.
Citigroup Global Markets, Morgan Stanley, UBS Securities, and BofA Securities are the appointed underwriters for the IPO. The specific amount VNG plans to raise from the IPO has not been determined yet.
In summary, Vietnamese internet startup VNG Corp is seeking an IPO in the US, aiming to raise $150 million. VNG is the parent company of Zing MP3 and plans to become the first publicly listed technology firm from Vietnam in the US. The music streaming platform currently has 28.7 million monthly active users and offers licensed music from major labels. VNG also operates mobile gaming, messaging, and payment applications. The company’s IPO filing acknowledged potential risks related to copyright infringement allegations, as it may lack comprehensive licenses for certain music content.