Black Spade (NYSE: BSAQ), made the decision last Thursday to merge with VinFast, an electric automaker, allowing VinFast to become listed on the Nasdaq platform in the United States. In a collaborative announcement with Black Spade, VinFast disclosed its plan to be listed on Nasdaq and to commence trading using the ticker symbol VFS, with an expected start date around August 15.
Vingroup, the parent company of VinFast, observed a nearly 7% surge in its shares on the Vietnam stock market on Friday, with each share reaching 72,600 dong ($3.06), marking the highest point in a year. In parallel, the New York-listed shares of Black Spade experienced an impressive 73% increase, reaching $18.50 on Thursday.
While the merger itself won’t generate additional capital for VinFast, the company’s founder, Pham Nhat Vuong, has been a strong proponent of a U.S. listing. This strategic move aligns with VinFast’s objectives of strengthening its presence in the U.S. market, alongside its ongoing efforts to construct a manufacturing facility in North Carolina.
VinFast initially filed for an IPO in December but shifted its approach in May by announcing the intention to go public through a merger with Black Spade. Similarly, other electric vehicle manufacturers like Faraday Future (NASDAQ: FFIE), Nikola Corp (NASDAQ: NKLA), and Lucid (NASDAQ: LCID) have also chosen special purpose acquisition arrangements for their listings. However, recently, the SPAC market has faced increased scrutiny from both investors and regulatory bodies.
The merger had valued VinFast at $23 billion, the two companies said. In comparison, the current market capitalisation of U.S.-listed EV makers Rivian (RIVN) and Lucid (LCID)are $21 billion and around $16 billion, respectively.