- The electric vehicle market in USA was worth $24.3 in 2020.
- VinFast is listed on a major US stock exchange under the ticker symbol VFS.
- VinFast’s IPO is a first for Vietnam.
VinFast files for IPO
According to Wire News Agency reports, Vietnamese electric vehicle maker VinFast filed for an initial public offering (IPO) on the U.S. Nasdaq stock exchange with the ticker symbol “VFS” on Tuesday.
VinFast announced that it will be known as VinFast Auto Limited for the IPO and will become a public limited company in Singapore. Share details, including number of shares and price per share, are yet to be finalized. It will open its first plant in North Carolina.
The EV manufacturer started operations in the US in 2019. It offers two all-electric SUVs — the VF8 and VF9, along with the option to lease batteries (to lower purchase prices).
If the IPO goes ahead, VinFast will be the first Vietnamese company to be listed in the US. Nine banks are involved in the process. JP Morgan, Morgan Stanley, Citigroup and Credit Suisse are some of the banks involved.
VinFast filed a confidential filing with the Securities and Exchange Commission (SEC) in April of this year. In March, it announced plans to open a manufacturing facility in North Carolina with a capacity of 150,000 units per year.
VinFast is part of Vietnam’s largest conglomerate Vingroup. The EV maker announced plans for an IPO early last year to raise $2 billion and $60 billion in valuation.
“The valuation or size of our IPO will depend in part on market conditions,” VinFast CEO Le Thi Thu Thuy said in a statement released on Wednesday.
“VinFast will continue to monitor opportunities for future fundraisers as the market becomes more familiar with the VinFast brand and history,” she added.
Aside from the IPO route, the company turned to banks to raise funds. In July of this year, VinFast entered into an agreement with banks to raise $4 billion to raise capital.
No timeframe for the IPO has been announced; and as mentioned in previous announcements, the IPO was scheduled for the final quarter of this fiscal year. However, the parent company previously said the offering could be pushed back to 2023 due to uncertainties.
“VinFast intends to conduct an IPO after the SEC declares the registration statement effective, subject to market conditions permitting,” the CEO said. She stressed the company’s primary goal of going public in the US.
Late last month, VinFast shipped its first batch of 999 units to the US. The EV maker has received 65,000 orders worldwide. By 2026, 750,000 vehicles are to be sold per year.
Since the announcement of the IPO, Vingroup’s shares are up 5.11% when the market opened on Wednesday.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while in college. He is a keen eye for detail and shares his passion for writing with his work as a developer. His backend knowledge of blockchain helps bring a unique perspective to his writing
Recent Posts by Andrew Smith (See everything)
Comments are closed.