VinFast’s Remarkable Nasdaq Debut Following Historic M&A Deal
Shares in Vietnamese electric vehicle maker VinFast surged on their Nasdaq debut on Tuesday amid limited trading. This comes after the company closed its merger with a special purpose acquisition company (SPAC) in Asia's biggest M&A deal of the year.
Opening Stock Price and Valuation Exceeds Expectations
The stock opened at $22, more than double the last close for VinFast's SPAC partner Black Spade Acquisition. The deal had valued VinFast at $23 billion. During trading, the stock reached as high as $24, temporarily valuing the unprofitable start-up at $55 billion, more than Ford's $48 billion market capitalization.
Limited Trading Volume in Early Hours of Listing
Despite the excitement, the volume of trading was minimal, with only 0.07% of shares changing hands in the first hour after the listing.
VinFast Founder's Significant Investment in the EV Maker
VinFast's founder, Vietnam's richest man Pham Nhat Vuong, has heavily invested in the EV maker, including $2.5 billion in April and $1 billion from his fortune. He now owns 99% of the 2.3 billion ordinary shares.
SPAC Listings Among EV Makers: A Trend under Scrutiny
Several other EV makers have listed via SPAC deals, attracting attention from investors and regulators, particularly as competition grows. Some competitors like Nikola Corp and Lucid saw valuations drop post-listing, while others like Tesla and Rivian performed better.
Investment Background and Future Plans of VinFast
VinFast, a unit of Vietnam's largest conglomerate Vingroup, has seen significant investment, including $9.3 billion from Vuong, Vingroup, and affiliates. The company plans to build a $4 billion plant in North Carolina and boost car shipments to the U.S., its main overseas market.
Sales and Shipments to the U.S. Market
VinFast has shipped nearly 3,000 units to the U.S. and started deliveries in March. Though exact sales figures have not been disclosed, data suggests sales of 137 vehicles in the U.S. through June.
Investors Cashing Out and Financial Challenges
Earlier this year, VinFast opted for the SPAC merger instead of a $2 billion ordinary listing. Investors in Black Spade Acquisition cashed out over 80% of their shares post-deal, leaving only about $14 million in the trust. Additionally, VinFast's financials reveal first-quarter revenue dropped 49% from the previous year, with a net loss of $598 million, and a 2022 loss of $2.1 billion.
