Home Auto News VinFast completes SPAC deal, starts trading on Nasdaq

VinFast completes SPAC deal, starts trading on Nasdaq

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VinFast, the Vietnamese electric vehicle (EV) startup, finalized its merger with the publicly-listed Black Spade Acquisition on Monday, through a process known as a SPAC (special purpose acquisition company) deal. This move has cleared the way for VinFast to commence trading on the Nasdaq stock exchange later in the day.

The newly combined entity will be called VinFast Auto Ltd., and it will be listed under the ticker symbol VFS. Existing shareholders of VinFast will retain nearly 99% ownership in this new company.

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VinFast publicly revealed its intentions for the SPAC deal back in May, disclosing that the newly merged firm would have an equity value exceeding $23 billion.

A SPAC deal, or reverse merger, allows a private firm to go public by being acquired by an already publicly-listed company, often specifically created for this purpose. Such a mechanism has its advantages, primarily in circumventing the intricate procedures required for an initial public offering (IPO). VinFast initially had plans to go through the IPO process but later decided on the SPAC route.

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VinFast distinguishes itself from competing EV startups by having substantial financial backing. As part of the Vietnamese conglomerate VinGroup, which operates in various sectors such as construction, real estate, agriculture, healthcare, retail, tourism, and more, VinFast has access to significant resources. The founder of VinGroup, Pham Nhat Vuong, has personally committed $2 billion to help VinFast attain global recognition.

The company has also demonstrated remarkable growth since introducing its first vehicle in Vietnam in 2018. VinFast has set sights on selling five different vehicles in the U.S. and began delivering its first, the VF 8 City Edition, earlier this year. The company is also constructing a manufacturing facility in North Carolina, which is expected to become operational by 2025.

However, this rapid expansion has not been without criticism, as the VF 8 has received predominantly negative reviews from various critics.

VinFast’s CEO, Thuy Le, celebrated the transition to a U.S.-listed company, stating that it symbolizes an important step in the company’s global strategy. Le emphasized that going public is more than just a stock market transaction; it signifies a strong endorsement of VinFast’s vision and future potential. Moreover, it underlines the company’s commitment to creating intelligent, safe, and eco-friendly electric vehicles that are affordable to a wide audience.

Frequently Asked Questions (FAQs) about VinFast

What is the SPAC deal that VinFast has completed?

VinFast completed a merger with Black Spade Acquisition through a SPAC (special purpose acquisition company) deal, enabling the Vietnamese EV startup to go public and start trading on the Nasdaq. The merged entity is named VinFast Auto Ltd., and existing shareholders of VinFast will retain about 99% ownership.

What is the significance of the ticker symbol VFS?

The ticker symbol VFS will represent VinFast Auto Ltd., the newly merged company of VinFast and Black Spade Acquisition, on the Nasdaq stock exchange.

Who is backing VinFast, and what are the company’s ambitions?

VinFast is part of the Vietnamese conglomerate VinGroup and has received a $2 billion pledge from VinGroup’s founder, Pham Nhat Vuong. The company aims to become a globally recognized producer of smart, safe, and environmentally friendly electric vehicles.

What are VinFast’s plans for expansion in the U.S.?

VinFast has plans to sell five different vehicles in the U.S. and started delivering the VF 8 City Edition earlier this year. They are also constructing a manufacturing plant in North Carolina, scheduled to open in 2025.

Has the newly launched VF 8 received positive reviews?

No, the VF 8 has been widely criticized and received predominantly negative reviews from various critics.

What does VinFast’s CEO say about the company going public?

VinFast’s CEO, Thuy Le, has stated that becoming a U.S.-listed company marks a vital milestone in global expansion. She sees it as a strong endorsement of VinFast’s vision and potential and a reflection of the company’s commitment to making smart, safe, and eco-friendly electric vehicles accessible to everyone.

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GreenTechLover August 16, 2023 - 11:51 am

So cool that VinGroup’s founder is investing $2 billion in VinFast. they must really believe in their vision for eco-friendly cars. hope they live up to the hype.

Kelly_Investor August 16, 2023 - 4:12 pm

a SPAC deal huh? i guess thats a smarter move than an IPO these days. Will keep an eye on the stock, who knows might be a good buy.

EV_Fan91 August 16, 2023 - 8:27 pm

I’m all for EVs but heard the VF 8’s not up to the mark, not sure if I would invest in the company. But interesting to see them on Nasdaq!

JohnDoe42 August 17, 2023 - 1:01 am

Wow, VinFast is really making moves. Didn’t they just start a few years ago? they’re going global now, thats impressive!


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