This is the first time a large Vietnamese enterprise has listed shares on a US stock exchange.
According to Reuters, a few hours before the Nasdaq opened on August 15, VinFast more than doubled in value in pre-market trading.
Statistics show that at times, VFS stock price rose to 28 USD/share, compared to the reference price of 10.45 USD.
As of 8:40 p.m., VFS shares were trading at $19.2/share, thereby increasing the capitalization of VinFast Auto Ltd.
Previously, on August 14, VinFast Auto Pte. Ltd. (“VinFast”) and Black Spade Acquisition Co. (NYSE: BSAQ) (“Black Spade”) completed the business combination after Black Spade shareholders voted to approve the transaction on August 10. The merged company is named VinFast Auto Ltd (VFS), with Vingroup holding 51.52%. After the merger, Black Spade becomes a wholly owned subsidiary of VinFast Auto Ltd.
According to a filing with the US Securities and Exchange Commission in June, VinFast was valued at around $23 billion. The merged company (with Black Spade) is valued at $27 billion, much higher than many emerging electric vehicle companies in the US such as Rivian (capitalization of over $20 billion) and Nikola.
Rivian is seen as a formidable rival to Tesla. The company, dubbed the “Tesla of electric trucks,” is one of the most promising newcomers to the electric vehicle market that has attracted investors over the past two years.
With this capitalization, VinFast will become the third largest electric vehicle manufacturer in the world, after Tesla and Li Auto. This is also the highest valuation that a Vietnamese enterprise has ever reached.
Becoming a listed company in the US is an important milestone in VinFast's global development journey.
VinFast was established in 2017 and is a business within the ecosystem of Vingroup, chaired by Vietnam's richest billionaire - Pham Nhat Vuong.
VFS's capitalization is sky-high, billionaire Pham Nhat Vuong is about to enter the top 100
According to Forbes' update, as of August 15, Mr. Pham Nhat Vuong has assets of 5.7 billion USD, ranking 494th on the list of the richest people on the planet.
With VinFast listed on Nasdaq, Mr. Vuong's assets may increase and his position among the world's richest people will improve.
Previously, according to Bloomberg's assessment, billionaire Pham Nhat Vuong's net worth could increase by 11 billion USD thanks to VinFast, from 5 billion USD to 16 billion USD.
As of August 11, the 110th richest person on the planet according to Forbes is Diane Hendricks, an American businesswoman who owns the largest construction empire in the United States and a film producer from Wisconsin, who has 15.7 billion USD.
And if his assets reach 17.5 billion USD, Mr. Vuong will be in the top 100 richest people, on par with the family of billionaire Rupert Murdoch (92 years old), the global media tycoon who owns a media empire including Fox News, The Sun, The Times, The Wall Street Journal and The New York Post.
In the 2022 annual report, Chairman Pham Nhat Vuong affirmed that Vingroup has officially entered the global game with the determination to conquer the world.
VinFast's listing on the US stock exchange with a valuation of 27 billion USD is seen as the starting point of a big journey.
Pioneer for Vietnamese companies to list internationally
VinFast not only impressed the US stock market with its sky-high valuation, but is also expected to be the company that opens the door to the US for other Vietnamese companies, in the context that many units also have the need to find a larger capital market.
About a year and a half after the first draft registration with the US Securities and Exchange Commission - SEC (March 31, 2022), VinFast shares have appeared on the US Nasdaq stock exchange.
The appearance of VFS shares on the US stock market is considered a milestone on the journey of Vietnamese enterprises to conquer the international capital market. And it is considered a turning point for VinFast in particular and the Vietnamese capital market in general.
This deal is seen as an inspirational story for businesses reaching out to international capital markets.
In recent years, many large corporations in Vietnam have issued and listed bonds on the international market. However, no large enterprise has been able to operate on the equity market, although there are plans such as Vietjet Air or VNG.
In fact, before Vinfast, there was a Vietnamese company that had set foot on the US stock exchange. Vietnam Construction and Investment Joint Stock Company (Cavico) was listed on the US stock exchange through the SPAC method, thereby listing through the backdoor and setting foot on the Nasdaq in 2009. However, this company was small in scale and the stock was later delisted in 2011 due to violating information disclosure requirements.
In the case of VinFast, with an equity value of up to 23 billion USD, this is considered the first large Vietnamese enterprise to list shares and access capital on the international market. In a recent report by Vingroup, this group mentioned the plan to raise capital of 1-2 billion USD in the US stock market in the period of 2024-2026.
VinFast's global milestone
Ms. Le Thi Thu Thuy, General Director of VinFast, in a recent announcement, affirmed that becoming a listed company in the US is an important milestone in VinFast's global development journey.
Vinfast's female CEO also said that the company is in the process of building a factory in North Carolina, expected to be operational from 2025 with a phase 1 capacity of 250,000 vehicles per year, to better compete in the US market.
According to data in the first half of 2023, Vingroup Corporation revealed that VinFast's electric car sales reached more than 13,000 vehicles, with revenue reaching nearly 12,000 billion VND.
VinFast’s listing on the US stock exchange comes amid a global recovery in capital flows and signs of a return to the electric car sector, an industry that has seen a huge leap forward in recent years.
According to the International Energy Agency (IEA), by the end of 2022, there will be more than 26 million electric vehicles in circulation globally, up 60% compared to 2021. The electric vehicle market is estimated to have a market share of about 18% in 2023, compared to 14% in 2022 and about 4% in 2020.
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