VinFast Trading & Investment – a Vingroup subsidiary based in Singapore – has just submitted documents for its first initial public offering (IPO) in the US.
The submission of documents to the US Securities and Exchange Commissionwas announced on December 7 but the number of shares and price have not been defined or revealed. VinFast plans to list its common shares on the Nasdaq Global Select Market with the code VFS.
Citigroup Global Markets, Morgan Stanley & Co, Credit Suisse Securities (USA), and J.P. Morgan Securities will be the lead bookmakers (an IPO valuation process) and the underwriters' representatives for the proposed offering. BNP Paribas Securities, HSBC Securities (USA), RBC Capital Markets, and Wolfe - Nomura Alliance will be co-bookmakers and Robert W. Baird & Co., Inc. will be co-managers.
Nasdaq is one of the two largest stock exchanges in the US along with the New York Stock Exchange. As of the end of October, these two exchanges had a total market capitalisation of nearly $40 trillion, of which Nasdaq's capitalisation was more than $17 trillion.
Nasdaq includes three separate segments: The Nasdaq Global Select Market, The Nasdaq Global Market, and The Nasdaq Capital Market. The requirements of listing shares on The Nasdaq Global Select Market that VinFast is expecting are stricter than those of the other two.
Preparing for the IPO of VinFast, at the end of 2021, Vingroup restructured the ownership of the subsidiary by transferring all the contributed capital (making up 51.5 per cent) in VinFast Trading and Production JSC (VinFast Vietnam) to VinFast Trading & Investment (based in Singapore).
Therefore, Vingroup and the shareholders of VinFast Vietnam indirectly own 99.9 per cent of VinFast Vietnam, and Vingroup is still retaining its 51.5 per cent ownership.
VinFast currently operates a green transport ecosystem, including a diverse range of electric vehicle products spanning various segments and categories including cars, bikes, and public buses, along with a network of charging stations across the country. The move will allow the company to expand further into the global markets.
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