Vietnamese EV maker VinFast to begin trading on the Nasdaq Tuesday after completing SPAC merger

Vietnamese EV maker VinFast to begin trading

Investors are still eager for EV startups backed by special-purpose acquisition companies. Just look at the wonderful introduction of Vietnamese electric car manufacturers.

It began operating as a publicly traded company on the Nasdaq stock exchange on Tuesday after closing its merger with SPAC Black Spade Acquisition (BSAQ).

Upon the closing of the agreement, Black Spade will become VinFast. The product label will change from ‘BSAQ’ to ‘VFS’.

Investors appeared euphoric when shareholders approved the merger on Thursday. Black Spade shares rose 73% to $18.50 a share but fell 43% to $10.45 in Tuesday trading.

And they should be ready for more changes. Shares opened at about $22 a share on Tuesday, traded as high as $16, were close to $28 by midday, and closed at $37, a 254% gain, according to FactSet.

The S&P 500 and Nasdaq Composite fell 1.2% and 1.1%, respectively.

Vietnamese electric car maker VinFast said it expects to begin trading on the Nasdaq next week, sending shares of its parent company and venture capital partner soaring.

Shares listed in Vietnam Vingroup rose nearly 7% to 72,600 dong ($3.06) on Friday, a one-year high. New York-listed shares of Black Spade (BSAQ.A), a special purpose acquisition company (SPAC) that is merging with VinFast to go public, jumped 73% to close at $18.50 on Thursday.

Vietnamese EV maker VinFast to begin trading

Shareholders of Hong Kong-based Black Spade (BSAQ.A), VinFast’s private equity partner, voted on Thursday to merge with VinFast.

In a joint statement with Black Spade, VinFast said it will list on the Nasdaq under the ticker symbol VFS “on or around August 15.”

In July, more than 80% of the shareholders of the SPAC decided to redeem their shares before the merger.

The SPAC merger will not raise new capital for VinFast, but company founder Pham Nhat Vuong has backed a US IPO as the automaker looks to expand into the US market and build a plant in North Carolina.

Vietnamese EV maker VinFast to begin trading

The merger values VinFast at $23 billion, according to the two companies. In comparison, Rivian ( RIVN.O ) of the United States and Lucid ( LCID.O ) currently have a market capitalization of $ 21 billion and about $ 16 billion, respectively.

VinFast’s current shareholders, including parent company Vingroup and Vuong, Vietnam’s richest man, will leave 99% of the company.

“Today’s vote is a vote of confidence from Black Spade’s shareholders in VinFast,” said VinFast Global Head Thuy Le.

Vietnamese EV maker VinFast to begin trading

VinFast filed for an initial public offering on the Nasdaq last December, but in May announced plans to take it public through a merger with Black Spade.

Other electric car makers including Faraday Future ( FFIE.O ), Nikola Corp ( NKLA.O ), and Lucid ( LCID.O ) have listed through SPACs, but markets for such businesses have come under scrutiny from those who -invest in regulators.

VinFast has exported about 3,000 electric vehicles to the United States from its plant in Haiphong, Vietnam. It began shipping the first VF8 electric cars in March. It does not mean US market prices.

Registration data analyzed by S&P Global Mobility shows just 137 VinFast electric vehicles sold in the US through June.

VinFast’s first-quarter revenue fell 49% year over year and posted a net loss of $598 million. In 2022, the company posted a loss of $2.1 billion. It has not turned a profit.

Vuong, who is also the chairman of Vingroup

Vietnam’s largest conglomerate told Vingroup shareholders in May that VinFast expects to sell up to 50,000 electric cars this year and break even by 2024.

The company has already abandoned some internal delivery targets and faces established rivals led by Tesla ( TSLA.O ), which has been slashing prices and launching several new electric vehicles.

Black Spade was founded by Lawrence Ho, the son of former gambler Stanley Ho, the private equity arm.

Shares of Vietnamese electric car maker VinFast began trading on the Nasdaq on Tuesday.
The SPAC deal with Black Spade values VinFast at about $23 billion
VinFast, the automotive arm of Vietnam’s Vingroup conglomerate, has imported about 2,100 electric vehicles to the United States from Vietnam and nearly 800 to Canada.
Good morning Carl. Bring late T Thai

Vietnamese EV maker VinFast to begin trading

Shares of Vietnamese electric car maker VinFast began trading on the Nasdaq on Tuesday after completing a deal with US-listed Black Spade Acquisition.

HANOI/SINGAPORE (Reuters) – Shares in VinFast rose on the Nasdaq on Tuesday, following the Vietnamese automaker’s $23 billion IPO, as the startup said it was likely to raise cash. global investors in 18 months.

The stock opened at $22, more than double the $10 per share deal with VinFast’s SPAC partner, Black Spade Acquisition, which valued VinFast at $23 billion.

It rose further during the session, ending at $37.06, valuing the electric car maker at a value of $85 billion, more than Ford’s $48 share price and the market price of $ 46 of General Motors.

According to data from Refinitiv, about $185 million of the company’s assets were exchanged.

Its merger with a special purpose acquisition company (SPAC) puts Vinfast in a market where founder Pham Nhat Vuong hopes to match Tesla CEO and the $4 billion company’s work on new marketing methods to attract customers.

The richest man in Vietnam, Vuong is well worth owning 99% of VinFast’s 2.3 billion. Combined through the flagship company and its subsidiaries.

Vietnamese EV maker VinFast to begin trading

“We have a lot of investors and investors in companies that have been approved. We hope to make some kind of money in the next 18 months. That’s for sure,” David Mansfield, CEO VinFast fund, told Reuters.

VinFast has delivered nearly 3,000 vehicles to North America since late last year, but initial sales have been slow. According to S&P Global Mobility, only 137 Vinfast electric vehicles were registered in the United States as of June.

“All eyes on the street are on the leaders of this next sector, where there are many winners, as well as Tesla, and this green EV that will happen in the coming years,” said Wedbush Securities analyst Dan Ives.

VinFast President Le Thi Thu Thuy said that the company is changing its distribution model. Which is based on Tesla’s direct sales method, and expects to work with dealers in foreign markets.

“We have changed to a hybrid model where we have our own showrooms. And we are asking retailers to open showrooms,” Thuy told Reuters in an interview.

VinFast was established as a division of Vietnam’s largest conglomerate, Vingroup. According to a June announcement, Vuong, Vingroup and its subsidiaries invested $9.3 billion in electric car manufacturers. In April, Vuong pledged $2.5 billion to support electric car makers, including $1 billion of his own assets.

VinFast’s first-quarter revenue fell 49% year over year and posted a net loss of $598 million. In 2022, the company posted a loss of $2.1 billion.

Construction has begun on a $4 billion facility in North Carolina.

VinFast is entering the US and European markets at a time when electric car prices are under pressure. Led by market leader Tesla and several Chinese companies.

The VinFast VF8 starts at $46,000 in California. Compared to $47,740 for the Tesla Model Y, before you factor in the $7,500 sales tax for the Tesla.

Thuy said VinFast is continuing with “future cost reductions.”

Thuy said VinFast hopes to bring its large VF9 EV to the US market by. The end of the year and is in the process of getting its vehicle approved by European safety authorities.

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