In 2023, Vietnamese EV maker VinFast goes public in US
VinFast goes public in US
According to the news on August 16, VinFast, a Vietnamese electric vehicle manufacturer, was officially listed on Nasdaq in the United States on August 15 local time.
VinFast’s intraday market value reached US$65 billion, surpassing Ferrari, Honda, and traditional American car companies Ford and General Motors, and lagging behind Volkswagen ($71.6 billion).
It is equivalent to the sum of the market value of Chinese car companies Li Auto and NIO Auto.
The editor learned from public information that VinFast was established in 2017 and is one of the subsidiaries of Vingroup founded by Pham Nhat Vuong, the richest man in Vietnam.
As of June 30, VinFast has delivered nearly 19,000 electric vehicles, including VF e34, VF 5, VF 8 and VF 9 models.
The company has exported about 2,100 electric vehicles from Vietnam to the U.S. and nearly 800 to Canada.
VinFast is not only Vietnam’s first independent car brand, but also Vietnam’s first electric vehicle manufacturer.
After merging and listing with the special purpose acquisition company (SPAC) Black Spade Acquisition Co. (Spade Capital), VinFast became the first Vietnamese car company listed in the United States and the first Vietnamese company listed in the United States.
Not long ago, many new cars in the United States entered the bankruptcy process.
Most of these bankrupt companies have also experienced glorious moments, such as skyrocketing market value, skyrocketing founders’ worth, and so on.
VinFast’s IPO process
VinFast’s road to IPO was not smooth.
As early as April last year, it announced its plan to go public in the United States.
At that time, it planned to raise US$2 billion and its valuation reached US$60 billion.
Due to the tight supply chain affecting the production of VinFast factory, Fan Riwang changed his words and said that because the market is full of uncertainties, “if necessary, the IPO will be postponed to next year (2023).
Moreover, as the US Securities and Exchange Commission has stricter requirements for the review of overseas companies listing in the US stock market, VinFast’s road to listing has become more and more difficult.
At the same time, in the past year or so, the valuation and stock price of the electric vehicle sector have experienced a big dive.
The stock prices of many new forces, including Tesla, have experienced huge fluctuations. Also received a delisting warning.
It wasn’t until late last year that VinFast began its US IPO and plans to list its common stock on Nasdaq under the symbol “VFS”.
VinFast then decided to go public through a backdoor, and VinFast’s backdoor was a Hong Kong-based SPAC company called Black Spade Acquisition.
Although this SPAC company is unknown, it has a strong background.
It belongs to Spades Capital under Melco International, and the chairman of Melco International is He Youlong.
Another identity of He Youlong is the second son of gambling king Stanley Ho.
In July 2021, BSAQU will be listed on the New York Stock Exchange, raising approximately US$150 million (approximately RMB 960 million).
According to public information, BSAQU targets companies in the entertainment industry, with a focus on enabling technologies, lifestyle brands, products or services, and entertainment media.
In addition, he is also responsible for managing He Youlong’s private assets and wealth.
Their previous plan was to merge with an Li company within two years.
Now this “Li company” is VinFast. The name of the merged listed company is VinFast Auto.
At the originally agreed $10 per share, Spade Capital valued VinFast at $23 billion.
According to the Daily Business News, VinFast’s share price has soared because the number of outstanding shares that can be traded is extremely scarce, accounting for less than 1% of the total share capital, making it more vulnerable to market speculation.
Fan Riwang directly and indirectly owns 99% of the company’s outstanding shares, mostly through his conglomerate Vin Group.
In addition, VinFast’s plan to build a factory in the United States and its global layout also provide the company with more room for imagination.
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