Another EV stock is set to debut in the US as Vietnamese electric vehicle maker, Vinfast, considers an IPO as soon as January 2023.
After a promising start in 2021, Vinfast, the automotive division of Vietnam’s largest conglomerate, Vingroup, looks to accelerate its EV rollout. Vingroup aims “for a better life for everyone” with advanced technologies like electric vehicles and software manufacturing solutions. The Vingroup also owns the leading retail real estate brand in Vietnam.
However, with electric vehicles rapidly gaining market share in all major global economies, Vinfast is arguably the Groups most intriguing business division.
Vinfast is setting its sights on becoming a global EV powerhouse after announcing earlier this year it will discontinue production of ICE vehicles while unveiling a full lineup of electric cars, which includes:
- VF 5 (mini)
- VF 6 (subcompact)
- VF 7 (compact)
- VF 8 (mid-size)
- VF 9 (full-size)
After delivering the first 100 Vinfast VF 8 models, the EV maker reiterated its intention to become a global brand by entering the US, Canada, and Europe.
With plans to begin production at its new North Carolina EV facility in 2024, Vinfast is also planning to go public on the US stock market.
When will Vinfast stock be available for investing in the US?
With most electric vehicle stocks down significantly this year (like most investments this year), Vinfast is looking to join the party.
According to a report from Bloomberg, Vinfast could go public as soon as January 2023, citing sources who asked to remain unidentified as the information is not yet disclosed.
One of the sources says Vingroup is looking to raise at least $1 billion, depending on the level of interest. After privately filing for a US listing in April, with the company’s CFO saying an IPO could be “sometime in 2023,” Vinfast is in the midst of talks with investors for the best timing.
With relatively volatile market conditions lately due to geopolitical tension, rising interest rates, and inflation eroding consumer budgets, the Vingroup is still finalizing details.
Vinfast said in July it would receive $1.2 billion in incentives for North Carolina EV plant, which expects to reach 150,000 annual production capacity when up and running in 2024.
So far, Vinfast has around 73,000 reservations globally for its EV models.
Even though EV stocks have underperformed this year, Vinfast going public makes sense. For one, it will help the company raise funds if needed while also establishing brand value in the US.
Rivian, Lucid, and others have gained significant attention and capital from going public. Meanwhile, Vinfast will also have to prepare to be watched under a microscope as investors gain access to its every move.
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