VinFast Auto Ltd. went public on the back of a SPAC deal on Tuesday. Stamping its presence on the market, VinFast (VFS) stock reached a value of $37.06 on the Nasdaq at one point, which is more than 270% from the SPACs IPO price and more than tripled the implied equity value of $2bn.
VinFast’s market debut at $65bn de-SPAC valuation
Worth an estimated $85bn, the Vietnamese electric vehicle manufacturer’s market capitalisation shot past that of General Motors Co. and Ford Motor Co. This company entered the market after merging with Black Spade Acquisition Co. At closing, it topped the closing price of the SPAC with 255%, making it the best-performing de-SPAC on the Nasdaq so far this year.
With this mind-blowing valuation, VinFast is worth more than BMW AG alone. It also trumps the combined value of Ford and Rivian Automotive Inc. Despite this initial excitement in automotive stock trading, VinFast is a low-float company with a small number of shares available for trading, meaning movements and values can flux significantly.
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According to regulatory filings, Pham Nhat Vuong, founder of VinFast and the richest man in Vietnam, controls roughly 99% of the company. His wife holds some of these shares while others belong to the Vingroup JSC. Had these shares not been under metaphorical lock and key, investors would have procured more from Tuesday’s market action.
Experts also noted that going public under a merger with a SPAC usually causes surges that even out after a few sessions when the media fuss abates. According to Bloomberg data, de-SPACs that debuted in 2023 experienced a median collapse of roughly 45%, while 18 of these lost more than 70% of their value.
