Vietnam's EV Maker Vinfast Files For U.S. IPO To Fuel Global Expansion
3 mins read
Published on December 31, 2022
Vietnam's electric-vehicle maker VinFast said on Tuesday it had filed for an initial public offering (IPO) in the United States to list on the Nasdaq under ticker symbol "VFS" to fund its expansion with a planned plant in North Carolina.
VinFast, which began operations in 2019, is gearing up to expand in the U.S. market, where it hopes to compete with legacy automakers and startups with its two all-electric SUVs, the VF8 and VF9, including battery leasing to reduce the purchase price.
For the IPO, the company said it would convert to a Singapore public limited company and would be known as VinFast Auto Ltd, while the number of shares to be offered and the price range for the proposed offering had not yet been determined.
Citigroup, Morgan Stanley, Credit Suisse and JP Morgan are leading a nine-bank syndicate behind the deal, according to the company filing. If successful, VinFast will be Vietnam's first company to list in the United States.
Tuesday's filing follows VinFast's confidential submission to the U.S. Securities and Exchange Commission (SEC) in April, a month after it said it would build a production plant in North Carolina with an initial projected capacity of 150,000 EVs a year.
A unit of Vietnam's biggest conglomerate Vingroup, VinFast first flagged its U.S. IPO in April last year, aiming to raise $2 billion with valuation of about $60 billion.
The market valuation for EV startups has drastically cooled over the past year after some companies with sky-high valuations faced scrutiny, together with the gloomy global economy.
"Valuation or the size of our IPO will be subject, in part, to market conditions," VinFast Chief Executive Le Thi Thu Thuy said in a statement released on Wednesday.
"VinFast will continue to monitor opportunities for future fundraises, as the market becomes more familiar with the VinFast brand and story," she said.
The S&P U.S. & China Electric Vehicle Index, which measures the performance of companies involved in the EV business, has lost 33.51% since the beginning of the year and was at 1,933.47 at Tuesday's close.
The company had said the IPO was just one option to raise funds. In July, it arranged with banks to raise at least $4 billion to fuel its aggressive expansion.
No time frame was specified for the offering on Tuesday although the company had said it aimed for an IPO in the fourth quarter of this year.
But in May, its parent company, Vingroup, warned that the IPO may be delayed to 2023 due to market uncertainty.
"VinFast intends to conduct an IPO after the SEC declares the registration statement effective, market conditions permitting," Thuy said, noting the company's primary objective was to successfully list VinFast on a U.S. stock exchange.
The EV maker in late November shipped its first batch of 999 vehicles to the United States, capping a five-year bid to develop an auto production hub in Vietnam for markets in North America and Europe.
VinFast has said it has almost 65,000 orders globally and expects to sell 750,000 EVs annually by 2026.
Shares in VinFast's listed parent company, Vingroup, which also has property and resort development businesses, were up 5.11% early on Wednesday following the IPO announcement.
Great Deals on Used CarsView All Used Cars
- 45,028 km
- 90,000 km
- 42,000 km
- 51,700 km
- 34,000 km
- 31,000 km
- 14,350 km
- 11,300 km
- 42,000 km
- 13,000 km
-15557 second ago
The company justifies its decision by citing various market factors and the necessity to uphold product quality and competitiveness.
-14818 second ago
Carmaker has said it will hike prices across its range of cars by up to 2 per cent.
-9330 second ago
The standard W175 is now priced from Rs 1.22 lakh (ex-showroom) positioning it under the W175 Street.
-8013 second ago
The scooter is offered with a special battery subscription scheme, which drives the initial price down and requires the buyer to pay a monthly subscription fee
-7150 second ago
The design patent shows the final production EV will be close to the Sierra concept showcased at the 2023 Auto Expo.
-101 second ago
The model is offered in both single and double cab guises in Algeria, while Brazil focuses solely on the four-door model
1 hour ago
The Renault Kwid and Triber get benefits up to Rs 50,000 while the Kiger gets maximum discounts of up to Rs 65,000
18 hours ago
The partnership looks to set up 7,000 electric vehicle charging stations across India.
19 hours ago
Stellantis and Ample have already established a pilot program that will begin in Madrid, Spain, in 2024 and will be using 100 Fiat 500e EVs within Stellantis Free2move car-sharing service.
21 hours ago
The one-off creation is mechanically identical to the standard Chiron Super Sport but features elements inspired by the Type 57 SC Atlantic such as the bespoke paint finish and chrome grille.
11 days ago
The updated Tesla Model 3 gets the “Active Hood” feature to reduce pedestrian injuries in the event of a collision
12 days ago
The new platform will largely use local components and has been dubbed the ‘A Main Platform’ with the first electric vehicle set to roll out in 2026, specifically for the Chinese market.
18 days ago
Hyundai is preparing to launch the Ioniq 7, the newest addition to its electric vehicle lineup, following the success of the Ioniq 5 and Ioniq 6 models
19 days ago
The Mahindra XUV.e8 is expected to share several components with the XUV700. The new spy shots reveal more details about the upcoming offering
23 days ago
We rank the top six electric cars and SUVs on sale in India based on their highest claimed range figures as per the WLTP cycle