A general view of the VinFast factory in Hai Phong city, Vietnam on April 22, 2021. Photo by Reuters / Thanh Hue
Vingroup to transfer all of its interests in VinFast Vietnam to its subsidiary in Singapore as part of preparations for the automaker’s initial public offering (IPO) in the United States
VinFast Vietnam is working with consultants and the world’s leading investment banks to prepare for its IPO on the US stock market in the second half of next year, envisioning a valuation of $ 60 billion and expecting to raise at least $ 3 billion, according to Reuters.
If the IPO plan goes well, the automaker will become the first Vietnamese company to be listed on the world’s largest stock exchange.
Vingroup’s board of directors has approved the transfer of the entire stake (51.52%) in VinFast Manufacturing and Trading Company, based in Vietnam (VinFast Vietnam) to VinFast Trading and Investment Company, based in Singapore (VinFast Singapore ).
After this restructuring, Vingroup and the existing shareholders of VinFast Vietnam will directly own 100% of the shares of VinFast Singapore and indirectly 99.9% of the shares of VinFast Vietnam.
In November, VinFast Vietnam opened its US headquarters in California and launched two electric cars at the Los Angeles Auto Show 2021, illustrating its goal of becoming a global automaker with a particular focus on electric vehicles.
VinFast Vietnam has branches in Canada, France, Germany and the Netherlands. In November, it signed a memorandum of understanding with the French multinational electricity distribution company EDF aimed at facilitating the establishment and operation of public charging stations and relevant services in France.
In a separate statement to Reuters, Vingroup said it was targeting global electric vehicle sales of 42,000 units next year, up from its previous plan of 15,000.