Vingroup plans US IPO for car unit Vinfast

VinFast Vietnam is working with consultants and the world’s leading investment banks to prepare for its IPO in the U.S. stock market in the second half of next year, eyeing a $60 billion valuation with expectation to raise at least $3 billion, according to Reuters.

If the IPO plan goes well, the automaker will become the first Vietnamese enterprise to list on the world’s biggest bourse.

Vingroup’s Board of Directors has approved the transfer of the entire stake (51.52 percent) in Vietnam-based VinFast Manufacturing and Trading Company (VinFast Vietnam) to Singapore-based VinFast Trading and Investment Company (VinFast Singapore).

After this restructuring, Vingroup and existing shareholders of VinFast Vietnam will directly own 100 percent of stakes in VinFast Singapore and indirectly own 99.9 percent of stake in VinFast Vietnam.

In November, VinFast Vietnam inaugurated its U.S. headquarters in California, and launched two electric cars at the Los Angeles Auto Show 2021, showcasing its aim to become a global automaker with particular focus on electric vehicles.

VinFast Vietnam has branches in Canada, France, Germany and the Netherlands. In November, it signed a memorandum of understanding withFrench multinational electric utility company EDF on facilitating the establishment and operation of public charging stations and relevant services in France.

In a separate statement to Reuters, Vingroup said it was targeting global electric vehicle sales of 42,000 units next year, up from its previous plan of 15,000.