(Bloomberg) -- Vietnamese internet startup VNG Corp., which previously planned a US initial public offering, is being investigated by Ho Chi Minh City police, the company said in an emailed statement.
VNG did not disclose the nature of the probe or how long it will last. The company “continues to actively cooperate with the authorities” during the on-going investigation, it said.
The company named Vice President Kelly Wong as acting chief executive officer to ensure smooth operations during the police investigation, it said in a separate statement. Co-founder Le Hong Minh remains CEO but is stepping aside temporarily, the company said.
VNG is committed to ensuring the stability of all business activities and safeguard the legal rights, interests of partners, shareholders and stakeholders, it said.
VNG, considered one of Vietnam’s most promising tech startups, in January withdrew its registration for an IPO in the US.
The company, whose headquarters is in Ho Chi Minh City, said at the time it had determined not to conduct a registered offering but planned to file a new registration in the future. It did not provide any time frame or reasons for the withdrawal.
Formerly known as Vinagame, VNG had its start in 2004 as a game publisher. It develops and publishes its own titles as well as local versions of international hits, and has gradually expanded to a wide range of services, such as music sharing, video streaming, messaging and mobile payments. VNG has 14 offices in 11 cities across Asia, including Beijing, Shanghai, Taipei, Bangkok and Singapore.
VNG’s revenue in the first half of this year increased 30.3% from a year earlier to 4.3 trillion dong ($174.7 million), according to its website. Its after-tax loss in the January-June period was 585.8 billion dong, down from 1.2 trillion dong a year earlier.
Shares of VNG on Vietnam’s Unlisted Public Company Market, known as UpCom, fell 6.8% at Friday’s close, the most since Jan. 8.
(Updates with acting chief executive officer in the third paragraph.)
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