Vietnamese EV manufacturer VinFast to list in the US in August after regulatory approval

Vietnamese EV manufacturer VinFast to list in the US in August after regulatory approval

VinFast Plans to List in the U.S. to Boost Competition Against Legacy Automakers

VinFast

Vietnamese electric vehicle maker VinFast is set to make its mark in the United States as it plans to list on the stock exchange via a blank-cheque company. The Securities and Exchange Commission (SEC) has given the green light to VinFast’s proposed business combination, paving the way for its expansion and competition against both traditional automakers and other startups in the U.S.

Moving Forward with the Plan

VinFast, which entered the market in 2019, originally filed for an initial public offering (IPO) on the Nasdaq in December of last year. However, the company later switched gears and announced plans to list through a merger with special purpose acquisition company (SPAC) Black Spade Acquisition Co (BSAQ.A). This move allows VinFast to expedite the listing process and proceed with its expansion plans in the U.S. market.

VinFast and Black Spade are aiming to complete the merger by August, pending shareholder approvals and other closing conditions. Dennis Tam, Chairman and Co-CEO of Black Spade Acquisition Co, states, “The declaration of SEC effectiveness is a significant step towards the successful completion of the business combination between Black Spade and VinFast.”

The proposed merger will be discussed and voted on at an extraordinary shareholder meeting scheduled for August 10.

Following the Trend of EV Companies

VinFast’s decision to list via a SPAC follows a growing trend among electric vehicle companies, including Faraday Future, Nikola Corp, and Lucid. Despite the current cooling of the once frenzied SPAC market, VinFast is determined to navigate this route, even with the increasing scrutiny from the SEC.

The new merged entity between VinFast and Black Spade is estimated to have a potential equity value of $23 billion. However, some analysts believe that this price tag may be unrealistic, considering VinFast’s continuous cash burn and the early stages of its business growth in the U.S. market.

SPACs have been popular among investors seeking high valuations for technology companies, particularly in the auto industry. However, it’s important to note that the valuation of merged firms can experience a decline in the months following the listing.

VinFast’s Progress in the U.S.

VinFast has already made significant strides in the U.S., having shipped around 3,000 electric vehicles to the country. Deliveries began in March, marking the company’s entry into the U.S. market. Furthermore, VinFast has commenced the construction of its $4 billion car plant in North Carolina, solidifying its commitment to growth and competition in the U.S.

Conclusion

VinFast’s decision to list in the U.S. through a SPAC merger is a bold move that sets the stage for increased competition in the electric vehicle market. As the company expands its operations and builds a manufacturing plant in North Carolina, it aims to challenge legacy automakers and other EV startups in the U.S. market.

While the estimated equity value of the new merged entity is ambitious, VinFast must prove its ability to sustain and grow its business in the competitive U.S. market. Investors and industry analysts will closely follow the developments leading up to the merger and beyond to assess the long-term potential of VinFast’s foray into the U.S.

HANOI, July 28 (ANBLE) – Vietnamese electric vehicle maker VinFast is planning to list in the United States next month via a blank-cheque company after the Securities and Exchange Commission gave the go ahead to its proposed business combination. VinFast, which began operations in 2019, is gearing up to expand in the U.S., where it hopes its planned listing as well as a car plant to be built in North Carolina can boost its ability to compete with legacy automakers and startups. The EV maker had filed for an initial public offering in the U.S. to list on the Nasdaq in December last year, but in May it announced plans to list through a merger with special purpose acquisition company (SPAC) Black Spade Acquisition Co (BSAQ.A). VinFast and Black Spade aim to complete the merger by August, subject to shareholder approvals and other customary closing conditions, they said in a joint statement on Friday. “The declaration of the SEC effectiveness is a significant step towards the successful completion of the business combination between Black Spade and VinFast,” Dennis Tam, Chairman and Co-CEO of Black Spade Acquisition Co said. Black Spade is set to hold an extraordinary shareholder meeting to approve the proposed business combination with VinFast on August 10, the joint statement said. VinFast’s move to list via a SPAC follows the likes of EV companies Faraday Future (FFIE.O), Nikola Corp (NKLA.O) and Lucid (LCID.O), despite a cooling in the once frenzied SPAC market, which has come under closer SEC scrutiny. The new merged entity was estimated by VinFast and Black Spade to have a potential equity value of $23 billion, according to their statement. The EV maker’s statements have not mentioned any institutional investors to invest alongside the SPAC deal through a private investment in public equity transaction. Analysts said the price tag is not realistic given that VinFast continues to burn cash and is in very early stages of growing its business in the U.S. SPACs are seen as a quick route to a stock market listing particularly for auto technology firms. They have proved popular with investors seeking lofty tech stock valuations, but the valuation of merged firms can often fall in the months after listing. VinFast has shipped around 3,000 EVs to the U.S. and started to deliver them from March. The company on Friday also begun construction of its $4 billion plant in the U.S.