Vietnam’s EV Powerhouse VinFast Eyes U.S. Listing

In a significant move towards global expansion, 's premier electric vehicle (EV) manufacturer, VinFast, is poised to its grand entrance on the US stock market in August. This news comes in the wake of the U.S. Securities and Exchange Commission (SEC) nodding favorably towards 's prospective business amalgamation.

Established in 2019, VinFast has been strategically positioning itself for a surge in the American market. A proposed factory in North Carolina coupled with the forthcoming listing are central to the automaker's ambitious plan to lock horns with entrenched auto giants and fresh-faced startups alike.

The firm initially filed to launch an initial public offering (IPO) on the Nasdaq in December of the previous year. But, May witnessed a strategic shift as VinFast announced its intentions to list via a merger with the special purpose acquisition company (SPAC), Black Spade Acquisition Co.

Both VinFast and Black Spade aim to finalize the merger by August, “subject to shareholder approvals and other customary closing conditions,” as stated in their joint press release on Friday.

Expressing optimism, Dennis Tam, Chairman and Co-CEO of Black Spade Acquisition Co, affirmed, “The declaration of the SEC effectiveness is a significant step towards the successful completion of the business combination between Black Spade and VinFast.”

Black Spade reportedly plans to hold an extraordinary shareholder meeting on August 10 to discuss and potentially approve the proposed business amalgamation with VinFast.

This venture down the SPAC lane sees VinFast following in the footsteps of fellow EV manufacturers, , Corp, and , even amid a relative slowdown in the previously bustling SPAC market.

Based on their joint statement, the anticipated equity value of the newly merged entity stands at a remarkable $23 billion. Despite this, there has been no mention of any institutional investors stepping up to engage in a private investment in public equity transaction alongside the SPAC deal.

While skeptics question the lofty valuation given VinFast's ongoing cash burn and nascent expansion into the U.S. market, VinFast remains undeterred. It has shipped approximately 3,000 EVs to the U.S. and began deliveries in March. Furthermore, the groundbreaking of its $4 billion American plant adds momentum to VinFast's decisive march into the global EV arena.

Photo courtesy of VinFast.


Discover more from EVXL

Subscribe to get the latest posts to your email.

Haye Kesteloo
Haye Kesteloo

Haye Kesteloo is the Editor in Chief and Founder of EVXL.co, where he covers all electric vehicle-related news, covering brands such as Tesla, Ford, GM, BMW, Nissan and others. He fulfills a similar role at the drone news site DroneXL.co. Haye can be reached at haye @ evxl.co or @hayekesteloo.

Articles: 445

Leave a Reply