The Vietnamese carmaker VinFast has submitted an application to the SEC for a public offering. By doing so, the company plans to raise funds for business development.
VinFast was founded in 2017 and became the first independent car manufacturer in Vietnam. Gas-powered models entered the market in 2019. By the end of 2022, VinFast plans to exclusively produce electric cars.
In March 2022, the company announced plans to build its first 1976-acre plant in North Carolina, USA. The first phase of the work will cost about $2 billion. By July 2024, the new plant will be able to produce around 150,000 cars a year.
In the US, VinFast will produce two all-electric SUV models, as well as electric buses and batteries for electric cars.
On the 31st of March 2022 the Vietnamese carmaker VinFast formalised a deal for an initial investment of $2bn, which will be used to build its first plant in North Carolina.
The exact date of the IPO is not yet known.
According to VinFast chief executive Lu Thi Thuy, the public offering is scheduled for the second half of 2022. Earlier in April 2021, the company said it was seeking a valuation of $60bn for its IPO.
The size and price range of the stock has not yet been determined, but the plan is to raise at least $3bn to develop the business in the US and open new car showrooms.
VinFast is considered one of the most explosive and anticipated IPOs of 2022. Markets and Markets' global electric vehicle market study states that the commercial vehicle segment will be the fastest-growing market by 2030. The active introduction of electric buses into public vehicle fleets will stimulate the development of the electric vehicle industry.
Deloitte predicts that by 2030, the share of hybrid vehicles (PHEVs) will continue to decline. BEVs (all-electric vehicles) will account for about 81% of total electric vehicle sales, or 25.3 million vehicles, and PHEVs will account for 5.8 million vehicles.
