Vietnam's VNG to go public in US: Is the tech unicorn late to the party?

Opening Bell 🔔 is Tech in Asia’s free newsletter that brings you the biggest news and latest trends around Asia’s publicly listed tech companies. [Read from your browser]( Opening Bell 🔔 Welcome to the Opening Bell! Delivered every Monday via email and through the Tech in Asia website, this free newsletter breaks down the biggest stories and latest trends on Asia’s publicly listed tech companies. If you’re not a subscriber, get access by [registering here](. --------------------------------------------------------------- Written by Simon Huang Journalist Hello {NAME} Here in Singapore, most of my social communications are via WhatsApp, Telegram, and Instagram. However, the situation is different in Vietnam. With over 75 million monthly active users, Zalo is the most popular messaging app in the country. This is just one of the services offered by local tech giant VNG, which started out as a games publisher but has branched out into other areas such as fintech, cloud computing, and communications and media. VNG is now preparing for a public listing in the US. I couldn’t help but think of Sea Group, another Southeast Asia-based tech company that began with gaming but ventured into other areas as well. Sea’s IPO went well, but it was the onset of the pandemic and easy money that really turbocharged its share price. VNG is preparing to go public at a very different time. It will be interesting to see how the market reacts to this Vietnamese upstart, which offers exposure to a fast-growing, emerging market but has seen its own rates of growth come down and is still making an operating loss overall. Find out more in this week’s Big Story. -- Simon  ---------------------------------------------------------------  THE BIG STORY [Vietnam’s first tech unicorn VNG set for IPO. Here’s what you need to know]( VNG is preparing to list amid a market downturn and slower growth. Will this be enough to entice foreign investors? ---------------------------------------------------------------  3 TRENDS TO KEEP EYE ON Hot stocks, earnings reports, restructuring, pressure from activist investors, and more. 1️⃣ India’s PhonePe launches stocks platform: The payment giant’s new platform offers retail investors access to stocks, mutual funds, and exchange-traded funds. However, it seems like users will have to install a separate app to invest. PhonePe’s initiative comes as companies like BlackRock (BLK, NYSE) are looking to tap India’s growing middle-class population. The US financial services giant is [forming a joint venture]( with Reliance’s (RELIANCE, NSE) Jio Financial Services with the goal of providing “tech-enabled access” to millions of investors in India. There’s an American connection to PhonePe too via Walmart (WMT, NYSE), which owns a 77% stake in the payments company. 2️⃣ PDD soars: PDD Holdings (PDD, NDAQ), the parent firm of Chinese social commerce firm Pinduoduo and global online marketplace Temu, [reported]( that its revenue for the second quarter was up by 66% year on year, while net income rose 47% during the same period. While the company [did not reveal Temu’s revenue]( its strong performance since launching in the US last September must have played a significant role in PDD Holdings’ robust revenue figures. Earlier this week, it was also reported that Temu had [launched in the Philippines]( setting up its first market in Southeast Asia. That can’t be good news for Shopee, the region’s dominant ecommerce platform. Its parent Sea (SE, NYSE) recently experienced a [historic decline]( in its share price due to concerns over increased competition in the space. 3️⃣ An Apple a day: Apple (AAPL, NDAQ) is set to [unveil]( the next generation of iPhones and smartwatches on September 12. With sales sliding for three straight quarters and shaky demand for its devices, Apple is said to be “under more pressure than usual.” Despite efforts to diversify its revenue sources, the company is still heavily reliant on the iPhone to drive revenue. Apple’s smartphone accounted for [almost half]( of total net sales in its most recent quarter - around twice that of services. While the transition to more stable - and predictable - services income is real, iPhone demand will continue to propel Apple’s fortunes for now. Luckily for the company, emerging markets like India and Indonesia offer a growing pool of affluent consumers who are more likely to shell out for an iPhone.  2 EYE-POPPING NUMBERS Tech in Asia scours the internet to bring you head-turning numbers from the world of business. - [US$114.7 million]( The amount that SoftBank (9984, TYO) Vision Fund netted from selling a 1.17% stake in Zomato (ZOMATO, NSE), the Indian food delivery firm. - [7,700]( The number of Facebook accounts connected to a pro-China influence operation that Meta (META, NDAQ) removed THE ONE YOU DIDN'T SEE COMING We spotlight the story that had everyone talking and social media buzzing during the past week. Beijing gives go ahead for startups’ US listing plans: Zeekr, a maker of electric vehicles, and WeRide, an autonomous driving startup, have gotten the [green light]( to go public in the US. This comes after China introduced new rules that give regulators greater control over businesses seeking to list shares abroad. The approval from regulators is an acknowledgement that Chinese companies still need US capital to grow. This comes even as the two superpowers continue to put a floor under a relationship that has deteriorated significantly in recent years. In the latest move, US Commerce Secretary Gina Raomondo concluded a visit to China by [saying]( that the US wanted to work with the Chinese to ensure a more “predictable” environment for American businesses in Shanghai. However, it’s hard to say if recent efforts are enough, not only to undo the damage done over the past few years but also to bridge fundamental differences that may only grow with time.  That’s it for this edition - we hope you liked it! Not your cup of tea? You can unsubscribe from this newsletter by going to our preference center at the bottom of this email. Happy investing and see you next week! Disclaimer: This content is for informational purposes only. Kindly do not construe any such information as legal, tax, investment, financial, or other advice. [ADVERTISE]( | [SUBSCRIBE]( | [HIRE]( | [FIND JOBS]( P.S. Don't miss out on the biggest tech news and analysis. Add newsletter@techinasia.com to your address book, contacts, or safe sender list. Or simply move us into your inbox. Too many emails? Switch to a different frequency or get new content through our [preference center]( or [unsubscribe](. You can also break our hearts and remove yourself from all Tech in Asia emails over [here](  Copyright © 2023 Tech in Asia, All rights reserved. 63 Robinson Road, Singapore 068894