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Bloomberg
VinFast, an electric carmaker backed by Vietnam’s richest man trying to take on Elon Musk’s Tesla Inc, has filed for an initial public offering in the US just as it prepares to deliver its first SUVs to California customers later this month.
The unit of conglomerate Vingroup JSC, founded by Pham Nhat Vuong, is being advised by banks including JPMorgan Chase & Co, Citigroup Inc, Credit Suisse Group AG and Morgan Stanley, according to an F-1 filing with the US Securities and Exchange Commission. The shares will trade under the symbol VFS on the Nasdaq Global Select Market. There were no details provided on the size of the fundraising or a possible listing date.
VinFast’s IPO plans have been percolating for almost two years. Bloomberg News first reported in early 2021 that Vingroup was considering a $2 billion US IPO for the EV maker. The company in April filed confidentially for the share sale. VinFast could raise at least $1 billion from an offering as soon as January, Bloomberg reported.
The numbers presented by the company suggest its tough road ahead. VinFast lost $1.3 billion in 2021 and endured losses close to $1.5 billion in the nine months to September this year. As of September, its owners and lenders had invested about $7.5 billion to fund operating expenses and capital expenditures.
While VinFast aims to make and sell around 1 million electric cars within five to six years, it has sold a small fraction of this so far. The company plans to expand its global production capacity to as much as 1.1 million vehicles per year by 2026, according to the prospectus.
VinFast’s additional capital requirements could be funded by additional debt and equity financing, which may include financing from related parties, it said. VinFast expects to continue to incur losses in the near term as it scales production, establishes manufacturing operations and expands marketing, sales and service networks outside of Vietnam, according to the filing.
VinFast will sell and list shares on Nasdaq “when market conditions permit,†VinFast CEO Le Thi Thu Thuy said.