EV Maker VinFast Files for US IPO, Looks to Build Production Plant in North Carolina

UTC by Tolu Ajiboye · 3 min read
EV Maker VinFast Files for US IPO, Looks to Build Production Plant in North Carolina
Photo: VinFast US / Twitter

VinFast has expressed its intent to expand aggressively into the US via an IPO and production plant. 

Vietnamese electric vehicle (EV) maker VinFast recently filed for an initial public offering (IPO) in the US. This development comes even as the automotive company prepares to deliver its first SUVs to California-based customers later in the month. Commenting on VinFast’s US IPO, the company’s chief executive Le Thi Thu Thuy, stated in a Wednesday press release:

“VinFast intends to conduct an IPO after the SEC declares the registration statement effective, market conditions permitting.”

Details of the VinFast US IPO

According to reports, VinFast would convert to a Singaporean public limited company known as VinFast Auto Ltd for the US IPO. In addition, the company’s shares would trade under the ticker VFS on the Nasdaq Global Select Market. However, the number of shares on offer and the proposed offering’s price range are to be determined. There are also no details on VinFast’s fundraising size or a possible listing date as of press time. Nevertheless, Thuy confirmed that these details “will be subject, in part, to market conditions”. In addition, the EV maker’s CEO also said:

“VinFast will continue to monitor opportunities for future fundraises, as the market becomes more familiar with the VinFast brand and story.”

According to VinFast’s filing with the Securities and Exchange Commission (SEC), its deal has the backing of a nine-bank syndicate. These include arrowheads such as Citigroup (NYSE: C), Morgan Stanley (NYSE: MS), Credit Suisse Group AG (SWX: CSGN), and JPMorgan Chase & Co (NYSE: JPM).

VinFast stands to be the inaugural Vietnamese company to publicly list in the United States. The company has previously stated that it would establish a production plant in North Carolina capable of initially churning out 150,000 EVs a year. VinFast’s IPO could also be the largest by a Vietnamese company since Vinhomes JSC’s staggering $1.4 billion efforts in 2018.

With this planned expansion into the US market, VinFast would likely compete with other EV startups hoping to eke out market share. The Vietnamese company intends to leverage its pair of all-electric SUVs, the VF8 and VF9, as well as battery leasing options.

US IPO in the Works for Two Years

VinFast’s IPO agenda has been in motion for roughly two years since reports first covered it in early 2021. At the time, VinFast founder Vingroup was mulling over a $2 billion US IPO for the EV manufacturer.

Even though VinFast could raise at least $1 billion from its IPO offering, there is a decline in market valuations for EV startups. This decline is due to increased scrutiny within the industry and the broader global marketplace drawdown. In late November, VinFast revealed the need to delay electric vehicle rollouts in Canada and Europe to early next year. According to the company, it is feeling the brunt of the global shortage of semiconductors (chips).

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Tolu Ajiboye
Author Tolu Ajiboye

Tolu is a cryptocurrency and blockchain enthusiast based in Lagos. He likes to demystify crypto stories to the bare basics so that anyone anywhere can understand without too much background knowledge. When he's not neck-deep in crypto stories, Tolu enjoys music, loves to sing and is an avid movie lover.

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