On August 15, VinFast electric vehicle company’s common shares and warrants are expected to begin trading on the Nasdaq Stock Market LLC (“Nasdaq”) under the new listing codes “VFS” and “VFSWW”, respectively.
With this event, VinFast will be considered the first Vietnamese enterprise to be listed directly on an international stock exchange. Nasdaq is the leading technology stock exchange in the US and the world.
Previously, Vingroup listed bonds in Singapore, but successfully listing VinFast on the US stock exchange will increase the company's position even more in the eyes of international investors.
More than a year to realize the dream of international listing
“ Vingroup has officially entered the global game with the determination to conquer the world ”, the opening sentence of Vingroup’s 2022 annual report is also Mr. Pham Nhat Vuong’s affirmation of his ambition to bring the Vietnamese brand to the international level. The listing of VinFast on the US stock exchange on August 15 will mark a big step forward on the path to realizing the dream that at one time seemed impossible for Vingroup’s Chairman.
VinFast's listing process was initiated in early 2022. Accordingly, in January 2022, Vingroup Corporation (HoSE: VIC) announced that it was implementing a plan to list shares of VinFast Automobile Manufacturing Company on the US stock exchange. VinFast will work with consultants who are the world's leading investment banks to list in the second half of 2022.
VinFast will be listed on the US stock exchange on August 15, 2023. (Illustration photo)
To carry out this great journey, Vingroup is actively restructuring. In December 2021, Vingroup's Board of Directors approved the transfer of all 51.52% of its capital contribution at VinFast Manufacturing and Trading Company Limited (VinFast Vietnam) to VinFast Trading and Investment Pte. Ltd., a subsidiary of Vingroup headquartered in Singapore (VinFast Singapore).
After completing the restructuring process, Vingroup and existing shareholders of VinFast Vietnam directly own 100% of VinFast Singapore's capital, thereby indirectly owning 99.9% of VinFast Vietnam.
Vingroup Vice President Le Thi Thu Thuy said the reason for transferring all capital contributions from VinFast Vietnam to VinFast Singapore is that the listing of Vietnamese companies abroad, especially in the US, has not been possible due to the lack of legal connectivity and related coordination mechanisms. Therefore, VinFast is required to list through VinFast Singapore because Singapore is a country that has connectivity with the US in this field.
According to Ms. Thuy, a successful listing in the US will open up opportunities for VinFast to access international capital sources, attract technology and engineering investment, and contribute to realizing the strategy of making VinFast a global brand. This will also make it easier for VinFast to market and bring products to the US market.
Vingroup has officially entered the global game with the determination to conquer the world.
Vingroup Chairman Pham Nhat Vuong
On May 12, 2023, VinFast and Black Spade Acquisition Co (Black Spade) announced a merger agreement. After the transaction, VinFast has a valuation of more than 23 billion USD and continues its plan to list on the US stock exchange.
On August 10, 2023, Black Spade Acquisition Co. shareholders approved the proposed business combination at a Special General Meeting of Shareholders (“EGM”). The final results of the vote will be included in a Form 8-K report filed by Black Spade with the SEC.
The merger is expected to be completed on August 14. Following the transaction, VinFast will operate as a consolidated company. The common shares and warrants of the Vietnamese electric vehicle maker are expected to begin trading on the Nasdaq Stock Market LLC (“Nasdaq”) on August 15, under the new listing symbols “VFS” and “VFSWW”, respectively.
Big dreams are not for everyone
According to stock investment expert Phan Dung Khanh, if VinFast is successfully listed on Nasdaq, this will be information that will have a strong and positive impact on all stock groups of listed companies on the Vietnamese stock exchange belonging to Vingroup and is also the most notable information on the Vietnamese stock market.
In addition to VinFast, many Vietnamese businesses have been and are seeking to list on the world's largest stock exchange because this is a big dream that many businesses are aiming for and trying to realize.
VinFast pioneers in entering the international capital market. (Illustration photo)
In September 2009, a Vietnamese company, Cavico Construction Company, announced its listing on Nasdaq, but in the form of a SPAC, not the traditional IPO.
The SPAC trend - a form of "special purpose acquisition companies" or reverse mergers - aims to bring this private company to the stock exchange in the fastest time, much faster than the listing process in the traditional IPO form.
However, in 2011, Nasdaq announced its decision to delist Cavico shares due to late submission of 2010 financial reports.
In 2022, Thaiholdings (HNX: THD) also announced that it wants to IPO the newly established company Thaispace on the US stock market in 2022.
Thaispace has an expected charter capital of VND26,688 billion. Thaispace was established with the goal of developing and applying space science and technology. In the period of 2026-2030, Thaispace expects to have the first flight into space in Phu Quoc, if licensed by the management agencies.
Tiki, a Vietnamese e-commerce platform, also plans to list in the US. Mr. Tran Ngoc Thai Son, founder and CEO of Tiki, said the unit initially planned to list in the US in 2025, but could do it earlier. The company could IPO through the form of SPAC.
Or VNG - a Vietnamese online gaming company that was invested by Singaporean sovereign wealth fund GIC - is also considering a US listing through a merger with a SPAC. The deal could value VNG at $2-3 billion. According to Bloomberg , the company has planned to list on Nasdaq since 2017.
Real estate company Big Invest Group also wants to IPO in New York to raise 200 billion USD. This company was established in late 2017, with initial charter capital of 10 billion VND. It started out as a unit specializing in buying and selling construction materials and construction machinery and equipment. Currently, Big Invest Group has a charter capital of 50 billion VND, and its main business has changed to real estate consulting and brokerage.
Successfully listing abroad, especially in the US, is an opportunity to access large capital sources as well as increase the company's value in the global market. However, this "dream" has not been achieved by all Vietnamese enterprises because not all companies meet the listing/trading conditions and operate in industries/fields that are of interest to investors around the world.
The US owns the two largest electronic exchanges in the world, NYSE and Nasdaq. Foreign companies wishing to list on these two exchanges must meet one of four strict financial standards on revenue, profit, cash flow, capitalization; along with other requirements on stock liquidity.
Ngoc Vy
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