Vietnam's electric-vehicle maker, VinFast Auto Ltd., is set to make a groundbreaking move by listing on the Nasdaq exchange. The company's merger with Black Spade Acquisition Co., a NYSE American-listed special-purpose acquisition company (SPAC), was approved by shareholders, paving the way for VinFast's debut on the Nasdaq on or around August 15 under the ticker symbol VFS. With a valuation of approximately $23 billion, this listing marks a significant milestone for VinFast, which has been striving to become a publicly traded company for years.
Following the announcement, shares of Black Spade Acquisition Co. surged by as much as 76% in New York, reaching a high of $18.80. The spike in share price triggered a halt in trading due to volatility, as more than 700,000 shares changed hands. This listing on the Nasdaq solidifies VinFast's position as a player in the electric vehicle industry. The company manufactures electric cars in Vietnam and is also constructing a factory in the United States.
However, VinFast still faces challenges ahead. Operational issues have hindered the company's efforts to gain a larger market share in the highly competitive EV space. In May, VinFast had to recall all its electric SUVs shipped to the US due to a software malfunction. Additionally, the company's losses have been widening due to the costs associated with its expansion.
It is worth noting that it is somewhat unusual for VinFast to list on a different exchange than the one its SPAC is listed on. Typically, in a SPAC merger, the backers of the blank-check company receive new stock in the combined entity in exchange for their old SPAC shares, which are then canceled and delisted. The new shares usually begin trading immediately after the completion of the deal on the exchange where the SPAC was approved.
VinFast's prospectus mentioned that the company intended to apply for listing on either the NYSE, NYSE American, or the Nasdaq. With a proposed equity valuation of $23 billion (or $27 billion including debt), VinFast will trade at a premium compared to its peers like Rivian Automotive Inc. and Nikola Corp., as per analysts from Bloomberg Intelligence.
Black Spade Acquisition Co. raised $169 million in a US IPO on the NYSE in 2021 and later shifted its listing to the NYSE American. When shareholders approved an extension of the SPAC merger deadline, around 84% of them chose to redeem their shares for cash, leaving less than $30 million in the SPAC's trust account.
The merger received overwhelming support, with 99.99% of votes cast in favor. The closing of the combination is expected to take place on August 14, finalizing the merger between VinFast and Black Spade Acquisition Co.
VinFast recently broke ground for its new factory in North Carolina, where it plans to produce 150,000 vehicles annually. Production is slated to commence in 2025, further strengthening VinFast's position as a global EV manufacturer.