EV giant VinFast has secured up to $1 billion in share subscription from Yorkville Advisors to assist its expansion into overseas markets. This news follows their filing with the U.S Securities and Exchange Commission earlier this week.
VinFast, which is based out of Vietnam, will have the option
to require Yorkville Advisors to subscribe for up to $1 billion worth of
ordinary shares - although the agreement remains voluntary and not binding on
Yorkville yet.
The company plans on using this new investment for business operations as well as general corporate purposes such as financing investments or expanding activities abroad.
VinFast’s Valuation Rose Past $85 Billion Since Nasdaq Debut
VinFast, the renowned electric car manufacturer owned by
Vietnam’s richest man Pham Nhat Vuong, recently made headlines after its
successful public debut on Nasdaq on Wednesday.
At a valuation of $85 billion at its opening day - higher
than that of traditional auto giant Ford - it seemed to make too good an
impression not to take notice. The market capitalization had fallen as low as
84%, but thankfully saw an upswing just hours later closing at $5.69 PM per
share today.
The new equity funding agreed upon with Yorkville could be set to revolutionize yet another milestone for VinFast and secure access to paramount capital which will allow further expansion outside the domestic territory onto a global scale, according to VinFast chief financial executive David Mansfield.
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Yorkville Looks Forward to Seeing VinFast’s Continued Success
Yorkville is optimistic about the success of VinFast and
looks forward to observing its growth. The company recently secured an up to $1
billion equity share agreement with Yorkville, with no obligation to draw down
the full amount. This decision was made in alignment with Yorkville’s goal of
opportunistic capital raising.
The transaction adds liquidity to VinFast shares over time,
as it has already sold around 22,000 cars this year – exceeding its initial
expectations. Its target for 2023 is within 40,000 to 50,000 units. What's more
impressive is that more than half of these sales went to a Vietnam-based fleet
operator controlled by Vuong himself!
Mark Angelo (the Founder and President of Yorkville) remains confident in the success and potential future growth of VinFast: “VinFast's commitment from experienced executives at LYFT & Tesla combined with strong shareholder support should enable further scale while further enhancing shareholder value."
Yorkville Bought $400M Worth Lordstown Shares 2 Years Ago
Two years ago, Yorkville acquired a remarkable $400 million
worth of shares in EV manufacturer Lordstown. And today, its decision to invest
has paid off; Vietnamese company VinFast is now looking at massive financial
success after securing up to $1 billion in share agreement with Yorkville.
VinFast is founded by Pham Nhat Vuong, the richest man in
Vietnam and also its biggest financial backer. The public announcement of fresh
round of funding pledges last April promised an impressive amount - totaling
billions for the future development plans of the company.
Of that whole sum, $2.5 billion was raised from both
internal and external sources- with founder himself pledging up to $1 billion
for this new wave of investment!
Whether or not this injection from Vuong will be able to help set VinFast on top amid competition from seemingly bottomless pockets Tesla and other Chinese players have been filling looks like something we're all going to wait and see very soon.
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The Bottom Line
The future is certainly looking bright for EV giant VinFast
with this agreement secured and Yorkville being so confident in their success.