VinFast on Monday accomplished a merger with listed firm Black Spade Acquisition in a so-called SPAC deal, paving the best way for the Vietnamese EV startup to begin buying and selling on the Nasdaq later at the moment.

The merged firm, referred to as VinFast Auto Ltd., will commerce beneath the ticker image VFS. VinFast’s current shareholders will personal roughly 99% of the brand new firm.

VinFast first introduced plans for its SPAC deal in Might. On the time, it stated the merged firm may have an fairness worth of greater than $23 billion.

Additionally known as a reverse merger, a SPAC deal is the place a personal firm goes public by being taken over by an organization that is already listed, sometimes one arrange solely for the aim, recognized in investor circles as a particular function acquisition firm (SPAC). The benefit is that it avoids the complexity of launching an IPO, a route VinFast initially deliberate to pursue.

2023 Vinfast VF 8 Metropolis Version

In contrast to rival EV startups, VinFast has deep pockets. It is a part of Vietnamese conglomerate VinGroup, which focuses on building and actual property growth however can be concerned in agriculture, healthcare, retail, tourism and quite a few different sectors. VinGroup founder Pham Nhat Vuong pledged $2 billion of his personal fortune to see VinFast develop into a globally acknowledged firm.

VinFast can be displaying speedy progress. Regardless of solely launching its first automobile in Vietnam in 2018, the corporate has already earmarked the sale of 5 autos within the U.S. and began supply of the primary, the VF 8, earlier this yr. It has additionally began building of a plant in North Carolina, which is scheduled to come back on-line in 2025.

A few of that progress could have been too quick, nevertheless, because the VF 8 has been extensively panned by reviewers.

“Turning into a U.S.-listed firm marks a major milestone in VinFast’s world enlargement,” Thuy Le, VinFast’s CEO, stated in a press release. “Extra than simply transaction on the inventory market, going public displays a robust vote of confidence in our imaginative and prescient and potential, in addition to fulfills our pledge to make good, secure and environmentally pleasant electrical autos accessible to everybody.”