What does VinFast calculate when listing for a US IPO in an unfavorable market?
As noted, VinFast Trading & Investment Pte. ltd. announced that it has filed an application on Form F-1 with the United States Securities and Exchange Commission (SEC) for an initial public offering (IPO). The number of shares to be offered and the expected price range are yet to be determined.
Vietnam’s first electric car company is expected to list common shares on the Nasdaq Global Select Market with the code VFS.
“In this IPO, VinFast aims to successfully list in the United States. This will be an important premise to create favorable conditions for the expansion of VinFast in the international market,” said Ms. Le Thi Thu. Thuy, president of VinFast and vice-president of Vingroup. , talked about the plan of this car company.
According to her, this formal listing application is the next step after VinFast submitted a draft F-1 Preliminary Listing Application Form to the SEC in April, following the standard process for conducting an IPO in the United States. United. . The company intends to proceed with an IPO after the SEC declares the registration valid and market conditions permit. Specifically, if the registration is declared valid by the SEC, the next steps are to offer and issue shares on the NASDAQ exchange, market conditions permitting.
With the aim of a successful IPO on the US stock exchange, VinFast executives said that the valuation as well as the size of this IPO depends on market conditions.
Once VinFast is successfully listed on the stock exchange, the company can continue to raise capital in the international stock market in the future, and the listing also facilitates VinFast’s expansion into the international school market” – analyzed Ms. As a result, achieving these near-term goals will help the automaker pursue its global expansion plans and deliver long-term stakeholder value.
It should be noted that at present the global market tends to be unfavorable. The capitalization of big electric car companies like Tesla and Rivian have all fallen by tens of percent over the past year. Thus, it is very likely that the valuation of VinFast through this IPO will not meet analysts’ expectations as they have been given previously.
In this regard, the President of VinFast pointed out that the automaker understands the current difficulties of the global market, but the goal of VinFast’s revolutionary development remains unchanged.
“The difficulties of the world are expected to continue as the progress of VinFast is, as everyone can see, very fair. VinFast has been released in the world, present in North America, Europe and in the first electric cars. It is the time when VinFast not only needs to raise more capital but also affirm its trust with global users.The listing will help VinFast to improve its position and help consumers to have a With more information about the company, we hope to increase the competitiveness of VinFast products in the international market,” Ms. Le Thi Thu Thuy said.
If successful, the IPO is expected to take VinFast’s brand and stature to a new stage in the international market and give the company another channel to raise capital in the future.
Speaking about the possibility of VinFast’s successful IPO, Ms. Thuy said she was “confident in her thorough preparation and preparedness in the process of preparing for this IPO.”