Vietnamese automaker VinFast has just announced that its Singapore-based holding company has filed an initial public offering (IPO) with US securities regulators. Information that emerges as the company plans to invest $4 billion for its first industrial complex in the United States.
VinFast reportedly seeks to raise $2 billion via IPO
According to a source familiar with the matter, VinFast is likely to seek to raise around $2 billion through the IPO bid conducted in the United States.
If the manufacturer advances in the unfolding of its plan, the timetable for the IPO is very broad. VinFast seems to be waiting for the right window of opportunity to carry out the operation and it could easily take a few months.
A unit of Vietnam’s largest conglomerate Vingroup JSC, Vinfast meanwhile said it had not determined the size and price range of the IPO. “There are options to consider. We are still considering many scenarios,” chief executive Le Thi Thu Thuy told reporters on the sidelines of an event to showcase the automaker’s new VF8 electric SUV. Adding that the IPO was planned for the second half of 2022 to fund a planned factory in North Carolina and expansion into the United States.
VinFast bets on the US market
VinFast, which became Vietnam’s first full-fledged automaker in 2019, is betting big on the US market, where it hopes to compete with traditional automakers and startups via electric SUVs and a battery rental model.
Last week, the company announced that it had signed a preliminary agreement to invest $2 billion to build a North Carolina plant to produce electric buses, SUVs and batteries for electric vehicles.
The company, established in 2017, plans to switch to the production of fully electric vehicles from the end of 2022.
Our opinion, by leblogauto.com
A year ago, sources said Vinfast was considering an IPO that could value the company at around $60 billion. But at present, this valuation seems somewhat called into question given the tensions recorded on the stock markets.