VinFast realizes international IPO dream with Nasdaq listing

IPO listing on Nasdaq

The IPO listing will mark a huge step towards realising a lifelong dream of leading Vietnamese private economic conglomerate Vingroup, which is the parent company of VinFast, in an effort to elevate the company’s profile in the eyes of foreign investors.

VinFast’s IPO plan has been on the cards since January, 2022, when Vingroup said that it was implementing a plan to list VinFast’s shares on the US stock exchange. VinFast has worked alongside numerous consultants that were the world’s leading investment banks in a bid to prepare for a potential initial public offering of shares at some point in the near future.

In order to fulfil this dream, Vingroup has pressed ahead with a restructuring scheme by transferring 51.52% of contributed capital in VinFast Vietnam to VinFast Singapore, a subsidiary company of Vingroup with its head office in Singapore. Following the completion of the restructuring process, Vingroup and shareholders of VinFast Vietnam directly own 100% of VinFast Singapore’s capital, thereby indirectly owning 99.9% of VinFast Vietnam’s capital.

The listing of VinFast’s shares on the Singapore exchange (SGX) has enabled the firm to make an IPO listing on the US stock exchange. The Vietnamese EV maker then filed for an IPO in the US in December, 2022, just as it was about to deliver its first SUVs to customers in California.

To prepare for the IPO, VinFast and Black Spade Acquisition Co. of the US entered into a business combination agreement in May 2023. The US firm then adopted the business combination plan at a special shareholders’ meeting held on August 10. The business combination is therefore expected to be completed on August 14, and the listing of the shares VFS and VFSWW would go public the following day.

If the listing is successful, the special purpose acquisition companies (SPAC) merger would see VinFast’s years-long efforts to become a publicly traded company turn into a reality.

Getting off to a good start

According to Le Thi Thu Thuy, vice president of Vingroup and Global CEO of VinFast, the successful listing in the US would present opportunities for VinFast to access international capital sources, attract investment in technology, and contribute to realising a strategy of making VinFast a leading global brand. This would subsequently make it easier for VinFast to market and bring products to the US market.

Nguyen Thanh Ky, general secretary of the Vietnam Association of Securities Business (VASB), said that VinFast’s business affair is a positive sign, not only for VinFast or Vingroup, but also for Vietnamese brands in the international market in general.

“The fact that large firms operating in potential fields when launching IPOs and listing its shares on foreign exchanges will attract international capital flows. This will also open up opportunities for many other businesses that want to reach the international level,” Ky told Dau Tu (Investment) newspaper.

Market analysts also shared the view that the IPO listing would provide VinFast and other firms in the Vingroup ecosystem further opportunities to go global and raise foreign capital for future development. After the IPO, VFS is expected to be valued at about US$23 billion on the Nasdaq.

Do Ngoc Quynh, general secretary of the Vietnam Bond Market Association (VBMA), described VinFast’s efforts to have their shares listed on the US stock exchange as a hugely proud moment that he said would greatly inspire many other businesses to learn and follow suit. Although this is a starting point, this shows “the crystallization of wisdom, bravery, discipline and professionalism that not many businesses can easily create,” he said.

The news about VinFast’s IPO listing on the Nasdaq has served to convince investors to pour capital into Vingroup’s shares (VIC) on the Ho Chi Minh City Stock Exchange (HOSE). VIC stock increased by 20.78% from July 31 to August 4, before continuing to jump by 16.7% in the past week, closing at a one-year high of VND72,600 each.  

VinFast’s profile is now available on the Nasdaq website. The carmaker aims to be a leader in the future of Smart Mobility through its intelligent, thoughtful and inclusive EV platform. It desires to foster a cleaner and more sustainable approach to 21st century mobility that is evolutionary and revolutionary.

Its all-electric sports utility vehicles (SUVs) have been delivered to customers in Vietnam and North America. Customers in Europe are expected to receive VinFast cars soon.

VinFast’s EV models that have been handed over in the Vietnamese market include VF e34, VF 8, VF 9 and VF 5. In early 2023, the company shipped the first two batches of VF 8s to North America. Most recently, the EV maker started construction of an electric vehicle factory in North Carolina (USA).