The market value of one of Vietnam’s largest automakers has risen above that of industry behemoths like Volkswagen and Ford thanks to the company’s successful Wall Street debut.
Following its merger with Black Spade Acquisition Co., a special purpose acquisition company (SPAC), the electric car manufacturer VinFast made a scorching debut in New York on Tuesday.
On their first day of trading, shares of the newly amalgamated business increased by 270% on the Nasdaq. They cost $10 when they first went on sale for $22, and they ended up costing $37 each.
The increase took VinFast’s market capitalization beyond $85 billion. That surpasses the valuations of Ford (F) and Volkswagen (VLKAF), which are respectively valued at 63.9 billion euros ($69.7 billion) and $48 billion by Refinitiv.
The Market Debut
VinFast is now valued at $85 billion as a result of the market debut, according to CNBC estimates. According to a June filing with a US securities regulator, VinFast was previously valued by the SPAC merger at over $23 billion.
Refinitiv data estimates the combined market value of BMW, Volkswagen, Ford, and GM to be roughly $69 billion, $48 billion, and $46 billion, respectively. With a $739 billion market cap, Tesla remains the largest automaker in the world, and its Chinese rival BYD is in fourth place with a $93 billion valuation.
VinFast’s billionaire owner Pham That Vuong, who controls the vast majority of the company’s 2.3 billion ordinary shares, will principally benefit from the stock’s rise. Through shares held by his businesses, which include VinFast’s parent company VinGroup, the wealthiest man in Vietnam owns 99% of VinFast.
Vuong’s net worth is said to have increased by $39 billion as a result of the frantic trading in VinFast’s shares on Tuesday, bringing it to $44.5 billion and elevating him to the fifth-richest position in Asia, according to Forbes.
Early this year, VinFast started shipping electric vehicles built at its Vietnamese facility to North America, where they were received with a barrage of unfavorable reviews.
Including the VF e34, VF 5, VF 8, and VF 9 models, VinFast has supplied close to 19,000 EVs since its founding in 2017 and aims to deliver 50,000 by 2023. Pham Nhat Vuong, the company’s founder, owns 100% of it.