Vietnam’s VinFast to complete SPAC merger next monthThe business combination values VinFast at an enterprise value of $27b and an equity value of $23b…

Vietnamese electric vehicle (EV) maker VinFast said it was set for a public debut next month following the completion of a business combination with Black Spade Acquisition Corp.

The transaction is expected to occur after the special purpose acquisition company holds its extraordinary shareholder meeting on August 10 to approve the proposed business combination, VinFast said in a statement.

The Vietnamese firm added that the US Securities and Exchange Commission (SEC) has approved its Form F-4 registration statement, which includes a company’s listing prospectus.

VinFast had earlier said it expected to merge with Black Spade by July 20, 2023.  The business combination values VinFast at an enterprise value of $27b and an equity value of $23b.

VinFast had initially planned a direct listing on Nasdaq. Black Spade, which had raised $150 million in its initial public offering on the New York Stock Exchange (NYSE), said in June that it would transfer its listing from NYSE to NYSE American.

In its approved prospectus, VinFast has not revealed the exact venue where it will trade its shares and warrants. It said either Nasdaq, NYSE, or NYSE American would be the qualified exchange.

Vinfast’s global CEO Thuy Le said in the Friday statement that the company has commenced the construction of its factory in North Carolina. VinFast currently operates its factory in Hai Phong, Vietnam, which has an annual capacity of up to 300,000 vehicles.

The company has delivered four EV models in Vietnam and exported its first VF 8 units to North America earlier this year.

“These achievements will help accelerate our commitment to the global green mobility revolution and our mission to help consumers make the switch to an EV easier and more accessible, while also opening a strategic capital-raising avenue for our global ambitions,” Thuy said.

VinFast recorded a 46% year-on-year increase in net loss at $598.3 million in Q1 2023. Its net loss for 2022 was $2.11 billion compared to $1.36 billion a year earlier. The firm’s total liabilities have jumped to $3.54 billion in Q1 2023.

Earlier this year, VinFast said it had received a fresh round of funding pledges worth $2.5 billion from its parent company Vingroup and its billionaire founder Pham Nhat Vuong for its development plans.

In Vietnam, Vuong recently established Green and Smart Mobility (GSM) to operate electric taxis and lease electric cars and motorbikes. GSM has invested in local ride-hailing startup Be Group and now offers VinFast’s EVs on Be’s platform.

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