The news that VinFast has just announced its move to list on the New York Stock Exchange (NYSE) through the merger with Black Spade Acquisition (NYSE: BSAQ), has received the attention of many people.
The key is how VinFast can be listed quickly and create liquidity, so that there is an opportunity to raise capital.
After the transaction, the combined company will have an enterprise value of approximately $27 billion. Equity value is $23 billion after the merger, excluding the amount to be converted from $169 million in trust cash.
Since April 2021, Bloomberg has valued VinFast about 20 billion USD. In fact, the valuation is not so important, but the key is how VinFast can be listed quickly and create liquidity, so that there is an opportunity to raise capital.
From my point of view, a Vietnamese enterprise has the ability to go to the international market to build capital raising plans and attract large capital sources in the world’s most exciting financial market like the NYSE. that’s something that is almost a pioneer in opening the way, which we have never had before.
I also hope that this case will be successful so that businesses have more solutions to mobilize financial resources, in the current short-term context, the capital market of Vietnam is very difficult. In particular, many people lost faith in corporate bonds, the stock market has not developed stably and the scale is still small.
Some investors also questioned, if VinFast is successfully listed on the NYSE, will Vietnamese investors be able to buy shares on it? In this regard, Vietnam’s legal regulations are still difficult, the trading platforms supporting the Vietnamese market to buy global stocks are still not legally legal.
Therefore, we have to wait until the law related to Vietnamese people investing abroad is more relaxed, then we can open accounts of securities brokerage companies in the US, or globally to place buy orders. like buying ordinary listed shares.
In terms of capital transparency, in Vietnam, in the VinGroup family, there are 3 listed companies, including VinGroup, VinHomes and Vincom Retail. Each company has its own principles and governance mechanism and independently discloses financial information according to regulations.
The stock market is in a “breathable” phase, but there are no signs to break through yet
Meanwhile, listed on the US stock exchange, the regulations on corporate governance are even stricter, because if violated, the consequences are huge. Therefore, investors do not need to worry too much about the related capital with the parent company, especially in developed markets like the US. The most important thing is that the law is set out that businesses must comply with.
In terms of feasibility, so far, there have been many companies listed internationally, with successful periods and unsuccessful periods. For example, the recent period was when Grab listed on Nasdaq through SPAC and raised 1 billion USD, but then the share price dropped, due to many factors and not only the company itself. The problem is related to cash flow, the possibility of tightening interest rates or the trend of investing in technology stocks, … but when the market recovers, it will be better. Therefore, we need to take a long-term view in this story.
Looking back at the Vietnamese stock market on May 15, the VN-Index fell slightly at the end of the session, but market liquidity reached VND 13,600 billion. It’s been a long time since we have had such a transaction value, the reason is because the market has a lot of supportive information and no bad news yet. Therefore, the market is in a “breathable” phase, but there are no signs to break through yet.
Another point is that highly speculative stocks often have a large number of transactions, reflecting the “pull-out” situation in the market. Currently, the market is fluctuating in a narrow range of about 1,030 – 1,070 points, investors are still buying and selling, it will be difficult for the market to have strong growth momentum and sustainable growth.
As we have analyzed, the driving force and basic foundation for the stock market to grow is to look at the strength of the economy as well as businesses. When these factors are good, the market can really prosper.
Although the market is still quite good at the moment, because of supportive news from macro policy, interest rates have not decreased sharply, signs of macroeconomic instability are still standing, the global economy is still difficult and Vietnam is affected by that, so the market will continue to fluctuate during this period but not too bad.
According to Business Forum
