Manufacturer VinFast Auto raises capital
VinFast Auto increases the number of publicly traded shares on the US stock exchange. To this end, it has sold some of its securities to the investment firm Yorkville Advisors. The deal was worth USD 1 billion. Under the terms of the agreement, the buyback of shares is possible within 3 years. The Vietnamese carmaker can ask the firm to buy back a certain number of securities at any time during this period.
Commenting on the deal, VinFast CFO David Mansfield said that the company is not obligated to use the agreed amount. The main objective is to raise capital to grow the business while regularly increasing the liquidity of the shares. In addition, this approach allows the producer to remain financially flexible and respond to market fluctuations without serious risk.
In August 2023, VinFast carried out an IPO on the US stock exchange by merging with Black Spade Acquisition. This allowed the company to strengthen its position in the US market and to scale up. VinFast’s growth strategy includes aggressive expansion into new countries, the first of which will be Indonesia. In addition, the company is seeking further opportunities to raise capital.
VinFast Business Overview
Founded in 2017 by local billionaire Pham Nhat Vuong, who holds a 99% stake in the company, VinFast is Vietnam’s first independent automotive company. It is the first independent company in the automotive sector in Vietnam. In 2018, the company first unveiled VinFast’s cars at a trade fair in Paris and, a year later, introduced its products to the Vietnamese market. Its models are designed under licence from global manufacturers:
– Lux A2.0 based on the BMW 5 Series;
– the BMW X5 is the basis for the Lux SA2.0 crossover;
– the Fadil hatchback was previously available as the Spark from Chevrolet and Karl from Opel.
VinFast initially involved specialists from BMW and other major manufacturers in developing its models. The company attributes its strategy to its intention to take the lead among mass car manufacturers in Vietnam.
Alongside its range of cars, VinFast also produces electric buses, with components supplied by Siemens Corporation. The company ships its products to various European countries, Australia, Africa and Asia.
In 2022, the company’s management announced the start of construction of new plants in Germany and the United States. The aim is to produce electric cars that eventually replace vehicles with internal combustion engines. In addition, VinFast intends to improve the software for electric vehicles to increase their performance and safety.
