VinFast to close SPAC deal in August at $23b valuation

A VinFast store in Santa Monica, California / Photo credit: VinFast

VinFast Auto, a Vietnamese electric vehicle maker, plans to list in the US through a merger with a special purpose acquisition company that is sponsored by investment firm Black Spade Capital.

The merger brings VinFast to a US$27 billion enterprise value and US$23 billion equity value, making it one of the most highly valued EV firms globally.

The deal is expected to close in August, subject to the approval of Black Spade’s shareholders and other closing conditions. The shareholders will vote on the merger at a general meeting on August 10, 2023.

VinFast produces and exports a range of EVs – including SUVs, scooters, and buses – to markets in Vietnam, North America, and Europe. It was founded in 2017 by Vingroup JSC, one of the largest conglomerates in Vietnam.

In March, VinFast shipped its first batch of vehicles to the US. And this month, it launched a showroom in Germany, adding to its overseas presence which already includes countries like France and the Netherlands.

The company previously tried a traditional IPO in the US but switched lanes to a SPAC deal earlier this year.

In July, VinFast started building its EV factory in North Carolina. The factory, which will cover an area of about 1,800 acres, will have an initial production capacity of up to 150,000 vehicles per year.

The factory is expected to start production by 2025 and will focus on making three EV models for the North American market.

See also: Vingroup founder’s EV play revs up Vietnam’s ride-hailing race