Sunday, 22/10/2023 09:10 (GMT+7)
VinFast Auto, the leading electric vehicle maker of Vietnam that has listed its share on Nasdaq, has reached a US$1 billion share sale deal with Yorkville Advisors Global, in an effort to raise funds for its global operation expansion.
 |
| At a VinFast motor demonstration in Los Angeles, USA. (Photo: VinFast) |
Under the deal, VinFast can ask the Mountainside, New Jersey-based investment firm to buy its shares valued up to US$1 billion at any time over the course of 36 months.
According to VinFast Chief Financial Officer David Mansfield, the new capital to be raised will help the automaker continue expanding its business globally, and improve the liquidity of the firm’s shares.
“In addition to existing funding commitments, it provides financial flexibility to fund our growth,” Mansfield said in a statement.
VinFast successfully made its initial public offering (IPO) on the Nasdaq Global Select Market on August 15, after merging with Black Spade Acquisition Co., a special purpose acquisition company (SPAC).
The stock has since been on a roller-coaster ride, with its shares surging as much as 700% within days of their debut and then plunged to a record-low this week. On October 19, the shares (VFS) closed at US$5.69 each.
VinFast is an affiliate of Vingroup JSC, the largest private business conglomerate in Vietnam. Its founder, billionaire Pham Nhat Vuong, controls 99% of the automaker.
In April, Vuong announced a donation of up to VND24,000 billion (equivalent to US$1 billion) to VinFast from his personal assets.
Vingroup also announced a non-refundable grant of up to VND12,000 billion (equivalent to US$500 million) and a loan of up to VND24,000 billion (equivalent to US$1 billion) to support VinFast’s global growth goals./.
CPV (Source: VOV)