VinFast will go public by way of a SPAC cope with New York Inventory Trade-listed Black Spade Acquisition Co., the Vietnamese electrical car startup introduced final week. The transaction is predicted to shut within the second half of 2023.

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.

Most EV startups lately have chosen the better route of SPAC offers when going public. One of many exceptions was Rivian, which launched an IPO in 2021.

Following the shut of the transaction, which VinFast expects for the second half of the yr, the mixed firm can have an fairness worth of greater than $23 billion. VinFast shareholders will personal roughly 99% of the mixed firm, which is able to function as VinFast and commerce on the NYSE.

2023 Vinfast VF 8

VinFast began U.S. deliveries in March, with the VF 8 mid-size SUV the primary of two fashions to reach. The opposite is the VF 9 full-size SUV, due later this yr.

Funds raised from the SPAC deal will assist VinFast in its bold plans, together with including VF 5, VF 6, and VF 7 crossovers and increasing into Europe. The corporate additionally plans to assemble a U.S. plant in Chatham County, North Carolina.

“The partnership with Black Spade and itemizing of VinFast within the U.S. represents the right capital elevating avenue for our future world ambitions,” Thuy Le, VinFast’s CEO, stated in an announcement.

The announcement comes at an inopportune time for VinFast as its VF 8 SUV was extensively panned in preliminary evaluations final week, together with by Motor Authority sister website, Inexperienced Automotive Studies.