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Last year, fewer companies were listed on the stock market in the US, compared to 2021 when the market witnessed IPO activity. Market watchers, in general, are skeptical about the current year’s prospects due to the recessionary atmosphere and market uncertainty. While tech companies ruled the IPO scene during the recent peak, others like healthcare and EV companies have also filed to go public lately.
Initial public offering of electric vehicle company VinFast Auto Ltd. is one of the upcoming events this year. Last month, the Vietnam-based company filed papers with the Securities and Exchange Commission, seeking to join the stock market. The move is part of the company’s efforts to expand into international markets. Upon successful completion of the offering, VinFast will be the first Vietnamese company to enter the US
To List on Nasdaq
The company, the country’s first domestic automaker, has applied for listing on the Nasdaq Global Select Market under the ticker symbol. VFS. Meanwhile, it has not revealed details like the number of shares and the offer price. There are nine book-runners in the offering, which will be led by Morgan Stanley, Credit Suisse, Citibank, and JP Morgan. Funds raised through the offering will be used primarily to build a plant in North Carolina, in order to serve the US market.
Focus on SUVs
VinFast mainly manufactures SUVs, with the main models being the VF8 and VF9. It looks to compete with local players through competitive pricing and battery leasing. In its final fiscal year of 2021, VinFast generated total revenue of $670.6 million, down 15% from the previous year. The company posted a loss of $1.35 million, which was narrower than the loss reported in 2020.
Established as VinFast Vietnam, the company started operations in June 2017 in Hanoi and was renamed as VinFast Trading and Production Limited Liability Company a year later. The first automotive manufacturing plant opened in June 2019.
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It is estimated that the share of electric vehicles, as a percentage of total passenger vehicles, will triple from 2.1% in 2019 to 6.7% in 2021 globally. According to the study, it is expected to grow to 28.6% by 2027, creating a huge opportunity for companies like VinFast.
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