Vietnamese electric automaker VinFast has reportedly announced its anticipation of commencing trading on the Nasdaq stock exchange in the upcoming week. This revelation has triggered a notable increase in the share prices of both its parent company and its partner in a blank-check merger.
On Friday, Vingroup, VinFast's parent company, experienced a nearly 7% surge in its Vietnam-listed shares, reaching a one-year high of 72,600 dong ($3.06). Simultaneously, the New York-listed shares of Black Spade, the special purpose acquisition company engaged in merging with VinFast for the listing, saw a substantial 73% climb, closing at $18.50 on Thursday.
Black Spade shareholders, based in Hong Kong, voted affirmatively on Thursday to greenlight the merger with VinFast, solidifying their partnership. VinFast and Black Spade jointly declared that the anticipated Nasdaq listing, denoted by the ticker symbol VFS, is projected to occur "on or around August 15." During July, over 80% of the SPAC's shareholders chose to redeem their shares ahead of the merger.
It's noteworthy that the merger won't secure new capital for VinFast. However, Pham Nhat Vuong, the founder of VinFast, has endorsed a U.S. listing as the company endeavors to expand its presence in the U.S. market and establish manufacturing facilities in North Carolina. The merger was assessed to value VinFast at $23 billion, in contrast to the present market capitalizations of U.S.-based EV manufacturers Rivian ($21 billion) and Lucid ($16 billion).
Following the merger, VinFast's existing stakeholders, including Vingroup and Pham Nhat Vuong, Vietnam's wealthiest individual, will collectively retain 99% ownership of the company. VinFast had initially pursued an IPO on the Nasdaq in December, but shifted its approach in May to a merger with Black Spade. While several EV manufacturers, including Faraday Future, Nikola Corp, and Lucid, have opted for SPAC deals to go public, this avenue has been under heightened scrutiny from both investors and regulators.