Vietnamese automaker VinFast is gearing up to go public and trade on the Nasdaq stock exchange after a merger with the special-purpose acquisition company (SPAC) Black Spade Acquisition Co.
With the merger, VinFast’s valuation has surged to approximately $23 billion, about $3 billion more than Rivian’s current market capitalization, and about $6 million more than Lucid. This valuation, including debt, brings VinFast’s equity to $27 billion.
The merger, scheduled for completion on August 14, received 99.99% of votes in favour from shareholders of Black Spade Acquisition Co. VinFast expects the first day of trading to be August 15.
“The voting results today are a vote of confidence in VinFast from Black Spade shareholders,” VinFast’s global head Thuy Le said in a statement.
VinFast’s founder, Pham Nhat Vuong, views the U.S. listing as a pivotal moment for the company’s U.S. market expansion plans, which includes a manufacturing plant in North Carolina already under construction.
The company’s expansion into North America has not been without challenges, as it navigates through competition from established players like Tesla. The company shipped 999 VF 8 SUVs to California last year, but has yet to sell all of them since deliveries began in March.
Part of the reason they have had trouble selling their cars is the high price and low quality. Early reviews unanimously slammed the electric SUV, and that appears to have continued in customer delivered vehicles as VinFast will now pay an owner if their car breaks down.