VinFast showcased its electric SUV at the 2021 Los Angeles Auto Show in November.Los Angeles will also become its U.S. headquarters The Vietnamese automaker VinFast is a subsidiary of Vingroup, the country’s largest business group. The company now plans to conduct an initial public offering (IPO) in the United States in the second half of 2022. The goal is to raise up to US$3 billion in funds. On the 4th, the month said that it had postponed its initial plan to conduct an IPO as early as this year. To this end, Vingroup is currently reorganizing the automotive division and…
The Vietnamese automaker VinFast is a subsidiary of Vingroup, the country’s largest business group. The company now plans to conduct an initial public offering (IPO) in the United States in the second half of 2022. The goal is to raise up to US$3 billion in funds. Month means 4, means postponed Initial planning Initial public offerings were conducted as early as this year.
To this end, Vingroup is currently restructuring the automotive division and will transfer 51.52% of VinFast’s shares to VinFast Singapore, a newly established Singapore holding company.
After the transfer, the existing shareholders of Vingroup and VinFast Vietnam will own 100% of VinFast Singapore. Singapore will own 99.9% of VinFast Vietnam and will become the entity to be listed.
The company said in a statement: “The new company VinFast Singapore is a step towards transforming VinFast into a global company and preparing for its initial public offering in the United States,” adding that “Vingroup will become a major shareholder of VinFast Singapore.”
SPAC or “traditional” IPO
Car manufacturer, where Aims to launch Electric vehicle companies that will be listed in the United States, Canada and Europe next year are cooperating with investment banks to prepare for an IPO, which will make VinFast one of the few Vietnamese companies listed in the United States.
It said that VinFast has not yet decided whether to go public as a special purpose acquisition company (SPAC), seeking a traditional IPO.
Reuters Previously, it was reported that Vingroup is negotiating with investors including Qatar’s sovereign fund Qatar Investment Authority and U.S. investment giant BlackRock to raise approximately US$1 billion in equity for its automotive division before the IPO. This will be Vietnam’s so far The largest private equity financing to date.
It is estimated that the post-market value of VinFast will reach between 25 billion and 60 billion US dollars.
The battery leasing model is the trump card
The company is particularly betting on the US market, hoping that the combination of its electric sport utility vehicle and battery leasing program will attract consumers away from competitors such as Tesla, General Motors and Rivian.
VinFast began to provide Vietnamese consumers with gasoline-powered vehicles equipped with BMW-licensed engines in 2019. According to the company, the company sold about 30,000 vehicles in Vietnam last year and sold more than 25,500 vehicles in the first nine months of this year.
VinFast has not announced the price of its cars in the United States. In Vietnam, its VF e34 electric SUV starts at 590.000.000 VND, which is approximately US$25,800. In contrast, the current base price of Tesla’s electric SUV Model X is $58,990.
