Vietnamese EV company VinFast files for IPO in the US

The electric vehicle market in the US was worth $24.3 in 2020.
VinFast will go by the ticker symbol VFS on a top US stock exchange.
VinFast’s IPO will mark a first for Vietnam.

VinFast files for IPO

As per reports from a wire news agency, on Tuesday, Vietnamese Electronic Vehicle maker VinFast filed for an Initial Public Offering (IPO) in United State’s Nasdaq exchange with the ticker symbol “VFS.”

VinFast informed that for the IPO, it will be known as VinFast Auto Limited and that it will convert to a Singapore public limited company. Details regarding the shares including number of shares and price per share have yet to be finalized. It will open its first plant in North Carolina.

The EV maker started operating in the US in 2019. It offers two all-electric SUVs – the VF8 and the VF9 along with the option to lease batteries (so as to reduce purchase prices)

If the IPO goes through, VinFast will become the first Vietnamese company to list in the US. 9 banks are involved in the process. JP Morgan, Morgan Stanley, Citigroup and Credit Suisse are some of the banks involved.

VinFast made a confidential submission to the Securities and Exchange Commission (SEC) in April this year. In March, it had announced that it would open a manufacturing plant in North Carolina with a capacity of 150,000 units per year.

VinFast is part of Vietnam’s largest conglomerate Vingroup. The EV maker announced plans for an IPO early last year to raise $2 billion and $60 billion in valuation.

“Valuation or the size of our IPO will be subject, in part, to market conditions,” said CEO of VinFast Le Thi Thu Thuy in a statement issued on Wednesday.

“VinFast will continue to monitor opportunities for future fundraises, as the market becomes more familiar with the VinFast brand and story,” she added.

Apart from the IPO route, the company approached banks to raise funds. In july this year, VinFast struck a deal with banks to raise $4 billion to raise capital.

No time frame for IPO has been revealed yet; and as per previous announcements, it was mentioned that the IPO was planned for the final quarter of this financial year. However, the parent company had earlier stated that the offering might be postponed to 2023 due to uncertainty.

“VinFast intends to conduct an IPO after the SEC declares the registration statement effective, market conditions permitting,” said the CEO. She highlighted the company’s primary objective of going public in the US.

Late last month, VinFast dispatched its first batch of 999 units to the US. The EV maker has received 65,000 orders globally. It expects to sell 750,000 vehicles per year by 2026.

Since the IPO announcement, Vingroup’s shares rose by 5.11% when the market opened on Wednesday.

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