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Debuting on the Nasdaq, a capitalization of over 85 billion dollars, more than Volkswagen, BMW and Mercedes and double that of Ford and GM. Decisive downsizing after the second session, with a drop of more than 20% and value down to 67 billion, behind the German giants but still by over 20 billion ahead of the big USA. These are days to remember for the electric car. The Vietnamese VinFast, born in 2017 in Hanoi, was listed on August 15th and immediately the share flew from 10 to 37 dollars, bringing into the pockets of the Vietnamese tycoon and founder Pham Nhat Vuong 39 billion dollars (he is the richest man in Vietnam, his assets have risen to 44.3 billion).
There’s a reason: VinFast merged with Spac (special purpose acquisition company) Black Spade but more than 90 percent of Spac’s investors withdrew before the deal was completed, according to Spac Research. This left very few shares available for trading and set the stage for outrageous price movements. In yesterday’s session the red was above 20%.
What history teaches
Paradoxes, those of exploits soon scaled down, not new. In fact, the precedent of the listing with Black Spade, two years ago, of the American Lucid (of which the Saudi sovereign fund Pif is the largest shareholder), could warn: Lucid shares have collapsed from the top of 53 dollars to the current 6 ,4. The house in Newark (California) is now worth less than 15 billion. Still speaking of electric car startups, another story of the Stock Exchange (via Ipo and not Spac) invites investors to be cautious. This is the rapid parable of Rivian, taken at the start (November 2021) with a record capitalization in the area of 100 billion dollars and down to today by 20.
VinFast has been specially observed by industry analysts since it made its debut in the parlor of the Los Angeles Auto Show in December 2021 and a few months later proposed itself as a car tech company at the CES in Las Vegas, then replicating at CES 2023.
The Vietnamese company, however, has serious ambitions. CFO David Mansfield said the company is in talks with a range of investors, including sovereign wealth funds, and is on track to raise additional funding over the next 18 months.
2023-08-16 18:55:59
#Electric #cars #Vietnamese #VinFast #boom #Nasdaq #Spac
