Vietnamese EV maker Vin Fast is now worth more than Ford and GM after its Nasdaq debut
Vin Fast is currently valued at $85 billion after its stock jumped 270% in its market debut on Tuesday. In doing so, he got past the world's largest car companies. The SPAC deal originally valued the company at about $23 billion. Shares of Vin Fast jumped about 270% after its U.S. trading debut, beating its total market value to some of the world's biggest automakers, such as Ford, GM, BMW and Volkswagen.
On Tuesday, the Vietnamese electric vehicle maker listed on the Nasdaq after completing a merger with US specialty acquisition company Black Spade Acquisition. A SPAC is a shell company that raises capital through an initial public offering to acquire an existing operating company. Vin Fast shares closed at $37.06 on Tuesday — a 270% premium over Black Spade Acquisition's IPO price of $10. Shares were down 10% before the open on Wednesday.
Following the IPO, Vin Fast is now currently valued at $85 billion, according to CNBC calculations. The SPAC merger previously valued Vin Fast at about $23 billion, according to a June filing with the U.S. securities regulator. Meanwhile, BMW and Volkswagen are worth around $69 billion, with Ford at $48 billion and GM at $46 billion, according to Refinitiv data.
By market capitalization, Tesla is still the world's largest automaker at $739 billion, with Chinese rival BYD in fourth place at $93 billion. Vin Fast is the automotive unit of the Vietnamese conglomerate Vin group and was founded in 2017.
For us, SPAC is "just a way to get listed"
Analysts have previously said that SPAC stocks are extremely volatile due to their speculative nature. Due to macroeconomic headwinds, many sponsors were forced to cancel their proposed deals, sometimes even before the SPACs were listed.
"We were ready to do a traditional IPO. We followed the path for almost two years, but the markets were challenging, so we decided to separate the listing from fundraising. We received financial support from our parent company and continued the listing through a SPAC," said the CEO VinFast Lê Thị Thu Thủy in an interview with CNBC on Tuesday.
According to Vin group, Vin Fast received a $2.5 billion backing from Vin group and its chairman, Pham Nhat Vuong, in April to fund its global expansion. When asked about the firm's decision to list through a SPAC amid adverse market conditions, Lê said it was "just a way" to get listed." You saw how the market reacted when we opened today, right? I think it's it's just a way to get listed in the U.S. We didn't think about the SPAC's reputation," Lê said.
Vin Fast's US expansion has faced setbacks, including delayed deliveries to its first customers due to a software problem. The company, which has yet to make a profit, finally delivered the vehicles to its first American buyers in March, several months after its December target. .
Vin Fast is building a plant in North Carolina to compete with electric car makers Tesla and BYD in the U.S. market, as well as traditional automakers that are increasingly focusing on hybrids and electric cars. The automaker said the factory can produce up to 150,000 vehicles a year in the first phase. The plant is expected to start operating in 2025 – a year later than its original target of 2024.
In response to how Vin Fast plans to compete with big players in a competitive market like the US, Lê said there is enough market share for each player.” , there's a place for everyone."Vietnamese EV maker Vin Fast is now worth more than Ford and GM after its Nasdaq debut
Vin Fast is currently valued at $85 billion after its stock jumped 270% in its market debut on Tuesday. In doing so, he got past the world's largest car companies. The SPAC deal originally valued the company at about $23 billion. Shares of Vin Fast jumped about 270% after its U.S. trading debut, beating its total market value to some of the world's biggest automakers, such as Ford, GM, BMW and Volkswagen.
On Tuesday, the Vietnamese electric vehicle maker listed on the Nasdaq after completing a merger with US specialty acquisition company Black Spade Acquisition. A SPAC is a shell company that raises capital through an initial public offering to acquire an existing operating company. Vin Fast shares closed at $37.06 on Tuesday — a 270% premium over Black Spade Acquisition's IPO price of $10. Shares were down 10% before the open on Wednesday.
Following the IPO, Vin Fast is now currently valued at $85 billion, according to CNBC calculations. The SPAC merger previously valued Vin Fast at about $23 billion, according to a June filing with the U.S. securities regulator. Meanwhile, BMW and Volkswagen are worth around $69 billion, with Ford at $48 billion and GM at $46 billion, according to Refinitiv data.
By market capitalization, Tesla is still the world's largest automaker at $739 billion, with Chinese rival BYD in fourth place at $93 billion. Vin Fast is the automotive unit of the Vietnamese conglomerate Vin group and was founded in 2017.
For us, SPAC is "just a way to get listed"
Analysts have previously said that SPAC stocks are extremely volatile due to their speculative nature. Due to macroeconomic headwinds, many sponsors were forced to cancel their proposed deals, sometimes even before the SPACs were listed.
"We were ready to do a traditional IPO. We followed the path for almost two years, but the markets were challenging, so we decided to separate the listing from fundraising. We received financial support from our parent company and continued the listing through a SPAC," said the CEO Vin Fast Lê Thị Thu Thủy in an interview with CNBC on Tuesday. According to Vin group, Vin Fast received a $2.5 billion backing from Vin group and its chairman, Pham Nhat Vuong, in April to fund its global expansion.
When asked about the firm's decision to list through a SPAC amid adverse market conditions, Lê said it was "just a way" to get listed." You saw how the market reacted when we opened today, right? I think it's it's just a way to get listed in the U.S. We didn't think about the SPAC's reputation," Lê said.
Vin Fast's US expansion has faced setbacks, including delayed deliveries to its first customers due to a software problem. The company, which has yet to make a profit, finally delivered the vehicles to its first American buyers in March, several months after its December target. .
Vin Fast is building a plant in North Carolina to compete with electric car makers Tesla and BYD in the U.S. market, as well as traditional automakers that are increasingly focusing on hybrids and electric cars. The automaker said the factory can produce up to 150,000 vehicles a year in the first phase.
The plant is expected to start operating in 2025 – a year later than its original target of 2024.In response to how VinFast plans to compete with big players in a competitive market like the US, Lê said there is enough market share for each player.” , there's a place for everyone."
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