Vietnam's Vinfast IPO may be delayed to 2023 on market uncertainty – Reuters.com

The Vinfast booth is seen at the 2022 New York International Auto Show, in Manhattan, New York City, U.S., April 14, 2022. REUTERS/David 'Dee' Delgado
HANOI, May 11 (Reuters) – The chairman of Vietnam's Vingroup conglomerate said on Wednesday that an initial public offering (IPO) for the company's auto unit, VinFast, may be delayed until next year due to market uncertainty.
The IPO is currently slated for the fourth quarter of this year. Vingroup Chairman Pham Nhat Vuong also told the company's annual general meeting the conglomerate was prioritising spending on VinFast and gave an aggressive car sales target.
"We are eyeing a Q4 IPO, but there are lots of ongoing market uncertainties now… If necessary we may delay it to next year," Vuong said.
"The IPO is not just for fundraising. It's also about marketing and claiming VinFast's position globally," he said.
VinFast's Singapore-based holding company had filed for an IPO with the U.S. securities regulators, as the company readies a $4-billion investment to build a factory in the United States.
Vuong also told the meeting the car maker was facing obstacles obtaining parts from China.
"Chip factories in Shanghai are closed – therefore chip supplies have been disrupted and the same story for other parts," Vuong said, referring to supply chain disruptions caused by COVID-19 lockdowns in China's business hub.
But Vuong sought to reassure shareholders the startup would go ahead with the IPO "no matter how uncertain the market".
VinFast, which began operations in 2019, is betting big on the U.S. market, where it hopes to compete with legacy automakers and startups with two all-electric SUVs and a battery leasing model that will reduce the purchase price.
VinFast has promised to create 7,500 jobs at its planned plant in North Carolina, where it will build the battery-powered VF8 and VF9 SUVs. The company has said it plans to begin construction of the plant as soon as permits are granted with a goal of starting production by 2024. read more
It has previously said it plans to begin exporting the two electric vehicles to the United States later this year from its existing plant in Vietnam.
Vuong said on Wednesday VinFast aimed to sell 750,000 cars in 2026, with 150,000 cars to be produced in North Carolina and the rest from its Vietnam factory.
Vingroup is also looking at getting financing from the U.S. government to support its expansion, including potentially tapping lending from the U.S. government's $25 billion Advanced Technology Vehicles Manufacturing loan programme.
Our Standards: The Thomson Reuters Trust Principles.
Canadian Prime Minister Justin Trudeau and South Korean President Yoon Suk-yeol on Friday agreed to deepen cooperation on critical minerals used in electric vehicles (EVs) batteries as both countries seek to cut emissions to fight climate change.
Reuters, the news and media division of Thomson Reuters, is the world’s largest multimedia news provider, reaching billions of people worldwide every day. Reuters provides business, financial, national and international news to professionals via desktop terminals, the world's media organizations, industry events and directly to consumers.
Build the strongest argument relying on authoritative content, attorney-editor expertise, and industry defining technology.
The most comprehensive solution to manage all your complex and ever-expanding tax and compliance needs.
The industry leader for online information for tax, accounting and finance professionals.
Access unmatched financial data, news and content in a highly-customised workflow experience on desktop, web and mobile.
Browse an unrivalled portfolio of real-time and historical market data and insights from worldwide sources and experts.
Screen for heightened risk individual and entities globally to help uncover hidden risks in business relationships and human networks.
All quotes delayed a minimum of 15 minutes. See here for a complete list of exchanges and delays.
© 2022 Reuters. All rights reserved

source

Leave a Comment

Ads Blocker Image Powered by Code Help Pro

Ads Blocker Detected!!!

Welcome to FactsPrime

Sorry, We have detected that you have activated Ad-Blocker. Please Consider supporting us by disabling your Ad Blocker, It helps us in maintaining this website. To View the content, Please disable adblocker and refresh the page.

Thank You !!!