Vietnam’s VinFast is now a publicly traded firm within the US, and it is valued greater than among the world’s largest automakers reminiscent of Common Motors, Ford, Volkswagen, and BMW – at the very least on paper.
The EV maker debuted on the Nasdaq World Choose Market below the ticker image VFS on August 15 after finishing a merger with special-purpose acquisition firm Black Spade Acquisition.
The corporate soared in its debut as a public firm, with its market capitalization exceeding that of Common Motors ($45.8 billion) and Ford Motor Firm ($47.9 billion) as merchants flipped VFS shares. VinFast is value about $85 billion after shares soared on its first inventory market day, closing at $37.06 in New York.
That is up greater than 270 % from the SPAC’s IPO value, and the market capitalization is greater than triple the SPAC deal, which initially valued the corporate at about $23 billion.
In accordance with Bloomberg, the share surge from the closing value of the SPAC on Tuesday makes the corporate the highest performing de-SPAC to debut this yr on a US inventory change.
The huge valuation additionally makes VinFast value greater than Volkswagen ($69.7 billion), BMW ($69.4 billion), and greater than Ford and Rivian mixed ($67.5 billion) on paper when it comes to market capitalization. Nonetheless, VinFast is lagging BYD’s market worth of $94.3 billion and can’t evaluate with Tesla’s $730 billion market cap.
Since VinFast is a low-float firm, it has a small variety of shares obtainable for buying and selling, with simply 1.3 million shares of the SPAC remaining after redemptions. This implies the inventory’s transfer and worth are risky.
In accordance with regulatory filings, Pham Nhat Vuong, VinFast’s founder and Vietnam’s wealthiest man, controls about 99 % of the corporate, partly by way of shares held by his spouse and Vingroup JSC. Consequently, the overwhelming majority of shares are unavailable to buyers, so only a few individuals stood to realize from Tuesday’s rally.
As well as, firms that merge with clean examine corporations usually expertise rallies that die down a couple of buying and selling classes after a deal closes. Bloomberg information exhibits that de-SPACs that debuted this yr have seen a median stoop of about 45 %, with 18 % of them dropping greater than 70 % of their worth.