VinFast is expected to raise about $2 billion from the offering, according to a Reuters source.
On April 7, VinFast’s website posted a notice that VinFast Trading & Investment Pte. Ltd., a subsidiary incorporated in Singapore of Vingroup, announced that it has submitted a draft preliminary listing application form F-1 with the US Securities Commission (“SEC”) regarding the proposed public offering of common shares.
The size of the issuance and the offering price of the shares are yet to be determined. The initial public offering is expected to take place after the SEC completes its review, and is subject to market and other conditions.
According to Reuters, the money raised is for a $4 billion investment plan to build the first factory in the United States.
VinFast is now betting big on the US market, where it hopes to compete with traditional carmakers as well as electric car makers. A source close to VinFast said that VinFast will probably raise about 2 billion USD from the offering.
An unnamed source told Reuters that VinFast is moving forward with its plans, but the date of the IPO is still unknown, which could take months to complete.
Last week, the company said it signed a preliminary agreement to initially invest $2 billion to build a plant in North Carolina to manufacture electric buses, sport utility vehicles and batteries for electric vehicles.
In December 2021, Vingoup Group (VIC) approved the transfer of all contributed capital (51.52%) in VinFast Manufacturing and Trading Company Limited, headquartered in Dinh Vu – Cat Economic Zone Hai, Hai Phong, Vietnam (“VinFast Vietnam”) for VinFast Trading and Investment Pte.Ltd., a subsidiary of Vingroup with its head office in Singapore (“VinFast Singapore”).
After completing the restructuring process, Vingroup and the existing shareholders of VinFast Vietnam directly own 100% of shares of VinFast Singapore, thereby indirectly owning 99.9% of VinFast Vietnam. Vingroup still maintains the current 51.52% interest rate in VinFast Vietnam.
Besides Vingroup, VinFast Singapore has another major shareholder, Vietnam Investment Group Joint Stock Company – an investment company owned by Vingroup Chairman Pham Nhat Vuong.