Vinfast Pushes IPO, Plans Nasdaq Listing
Vinfast provided an update Wednesday on its plans to raise capital through an initial public offering.
The Vietnamese EV startup filed relevant documents with the U.S. Securities and Exchange Commission and announced that it plans to list its shares on the NASDAQ Global Select Market under the ticket symbol VFS.The timing of the listing will be announced at a later date. Binfast also plans to announce the number of shares to be offered and the price range closer to the listing date.
Because IPOs require special scrutiny, most EV startups in recent years have opted for the easier route of a SPAC (special purpose acquisition company) transaction when going public. One exception is Rivian, which launched its IPO in 2021. SPACs, also known as reverse mergers, are companies formed to raise capital through an IPO and then acquire or merge with the company that was the subject of the IPO.
Unlike rival EV startups, Vinfast has deep pockets. It is part of the Vinh Group, a Vietnamese conglomerate specializing in construction and real estate development, but also involved in agriculture, healthcare, retail, tourism, and many other sectors. Pham Nhat Vuong, founder of Vinh Group, has pledged $2 billion of his fortune to help Vinh Fast become a globally recognized company.
Vinh Fast is also showing rapid growth: despite only launching its first vehicle in Vietnam in 2018, the company already plans to sell five vehicles in the US, with its first vehicle, the VF 8 mid-size SUV, scheduled for delivery in late December. The company also plans to build a plant in North Carolina, which is expected to be operational in 2024.
