 "VinFast Auto")
VinFast Auto soared in its debut as a public company, vaulting its market capitalisation beyond that of General Motors and Ford Motor, as traders flipped shares of the electric-vehicle maker.
The Vietnamese company, which went public in a SPAC deal, is worth about $85 billion after shares soared Tuesday, rising to $37.06 in New York — up more than 270 per cent from the SPAC’s IPO price and more than tripling the deal’s $23 billion implied equity value. VinFast debuted on the Nasdaq Global Select Market under the symbol VFS to a flurry of trading and volatility halts after completing a merger with special-purpose acquisition company Black Spade Acquisition. The 255 per cent surge from the closing price of the SPAC on Monday makes the company the top performing de-SPAC to debut this year on a US exchange.
The eye-popping valuation makes VinFast worth more than BMW AG, alone, and more than Ford and Rivian Automotive combined on paper in terms of market capitalisation, lagging BYD’s market value.
However, it should be noted that VinFast is a low-float company. There’s a small amount of shares available for trading — just 1.3 million shares of the SPAC remain after redemptions — which means the stock’s move and value are prone to large swings.
Regulatory filings show Pham Nhat Vuong, Vietnam’s wealthiest man and VinFast’s founder, controls about 99 per cent of the entity, partly via shares held by his wife and Vingroup JSC. That means the vast majority of shares are locked up and unavailable to investors who would have gained from Tuesday’s rally.
VinFast CEO Thuy said on Tuesday the EV maker would be shifting to a new “hybrid model” for sales, bringing in distributors and dealers for overseas markets. Since it announced its overseas expansion plans, VinFast had been counting on just using its own showrooms, like Tesla does. Founder Vuong had said in May that VinFast could sell 50,000 EVs this year. Through the first seven months, it has sold over 16,000, including its sales in Vietnam.
