VinFast, the first carmaker originating from Vietnam, has submitted an application for an initial public offering (IPO) in the United States. The company’s shares will be available on the Nasdaq Global Select Market under ‘VFS’.
The move comes ahead of its planned launch of electric SUVs in the US later this month. It is a major milestone for both VinFast and its parent company Vingroup, run by Vietnam’s wealthiest entrepreneur Pham Nhat Vuong.
VinFast’s IPO has been on the cards since early this year, when the company announced it was eyeing a Q4 IPO. However, due to market uncertainties, the company earlier said that the IPO could be delayed to 2023. To date, the company has not yet announced the number of shares or their pricing.
The announcement also comes after the successful release of VinFast’s two models, VF8 and VF9, in the US earlier this year. The upfront payment for these models is $42,000 and $57,500 respectively, which is significantly cheaper than Tesla’s SUVs, which start at around $65,000.
Despite challenges in the global environment over the last few months, VinFast has made several strategic decisions to increase its global presence.
That includes its plan to invest $4 billion in a new electric vehicle (EV) factory complex in the United States in March, shifting its legal and financial headquarters to Singapore in May, hiring 8,000 more employees for an electric-vehicle plant in Vietnam in August, and now concretizing its IPO filing.
In July, VinFast also opened six showrooms in California, including a flagship store at one of the trendiest malls in upmarket Santa Monica.
VinFast moves fast
North Carolina Governor Roy Cooper has also expressed support for VinFast, citing its potential to create thousands of jobs and provide a major economic boost to the state, where the company’s first EV factory in the US is located.
The factory is estimated to cost $2 billion and will have an annual capacity of 150,000 cars when fully operational.