Shares in Vietnamese electric vehicle maker VinFast surged on their Nasdaq debut on Tuesday after the company closed its merger with a special purpose acquisition company in Asia’s biggest stock merger so far this year.
The stock opened at $22, more than double the last closing for VinFast’s SPAC partner Black Spade Acquisition. VinFast had been valued at $23 billion in the deal.
Several other EV makers have listed via such SPAC deals, which have attracted increased scrutiny from both investors and regulators, especially as competition in the EV market heats up.
Some of VinFast’s rivals, including Nikola Corp. and Lucid Motors, have seen their valuations plunge after their SPAC listings. Nikola now commands a market value of $1.4 billion, versus $13.9 billion before listing while Lucid has a market value of $15.5 billion, versus $24 billion during its 2021 SPAC deal.
Shares in other rivals which did not list via SPACs, including Tesla Inc. and Rivian Automotive Inc., have performed better. Tesla shares are up 94.6 percent this year while Rivian is up almost 17 percent.
VinFast is a unit of Vietnam’s largest conglomerate Vingroup.
VinFast’s founder, Vietnam’s richest man Pham Nhat Vuong, pledged $2.5 billion in April to bolster the EV maker, including $1 billion from his personal fortune. He is the beneficial owner of 99 percent of the ordinary shares of the EV maker after the merger.
VinFast plans to build a $4 billion plant in North Carolina and boost car shipments from its factory in Vietnam to the U.S., its main target market overseas.
VinFast has shipped nearly 3,000 units to the U.S. and started delivering them from March. The company has not disclosed its sales but according to Experian registration data reported by Automotive News, it sold only 128 vehicles in the U.S. through May.
Earlier this year, VinFast ditched a $2 billion ordinary listing for the SPAC merger.
Investors in Black Spade Acquisition cashed out over 80 percent of their shares after the deal with VinFast, leaving only about $14 million in the company’s trust, according to a public filing.
