Source: Vietnam-based internet company VNG postpones its US IPO, planned for September 2023, until 2024, after mixed performances by Arm, Instacart, and Klaviyo
Context & Ripple Effects
VNG had recently been reported to be targeting a US listing and roughly $150 million in proceeds, making the timing of public-market demand central to its financing plans. The company’s earlier US IPO target set up this decision as a test of whether the reopening IPO window could support a Vietnam-based internet issuer.
The delay proved consequential: VNG later withdrew its US IPO registration while saying it would register again in the future. That sequence underscores how a postponed launch can become a longer reset when market reception remains uncertain.
First-order effects
- VNG delays access to US public-equity capital and remains private while it waits for a more favorable issuance window.
- The company’s prospective investors and advisers must reassess valuation, timing, and demand rather than proceed on the planned September schedule.
Second-order effects
- Mixed trading in recent technology listings becomes a more immediate benchmark for other IPO candidates, increasing the incentive to defer offerings rather than accept weak aftermarket performance.
- A delayed VNG deal reduces the near-term supply of cross-border technology listings seeking US investors, concentrating attention on the few issuers willing to test the market.
Third-order effects
- If issuers repeatedly postpone after uneven debuts, the IPO market may reopen selectively rather than broadly: companies with clearer profitability or investor demand get priority, while others remain private longer.
- For emerging-market internet companies, access to US listings may become more dependent on stable post-listing trading conditions than on filing readiness alone.
The trend: The story is one data point in a cautious IPO-market reopening in which each new listing’s aftermarket performance shapes the next issuer’s willingness to launch.