The net worth of Vingroup JSC chairman Pham Nhat Vuong shot up by $39 billion after electric vehicle maker VinFast made its debut on the Nasdaq Tuesday.
Regulatory filings in the U.S. show Vietnamese tycoon Vuong directly and indirectly controls 99% of VinFast’s outstanding shares, mostly through his conglomerate Vingroup.
The shares of VinFast (VFS), a Vingroup subsidiary, soared on the Nasdaq, opening at $22, more than double the $10 per share agreed with VinFast’s SPAC partner Black Spade Acquisition; and closed at $37.06, valuing the Vietnamese EV maker at $85 billion, well more than three times the original valuation of $23 billion.
The 270% plus surge from $10 to more than $37 and the resultant market cap of $85 billion has put VinFast above major automakers Ford ($48 billion) and General Motors ($46 billion).
About $185 million worth of VFS shares were exchanged Tuesday, according to Refinitiv data.
VinFast has 2.3 billion ordinary shares after the merger with SPAC partner Black Spade Acquisition. The business combination, which completed on Monday, U.S. time, valued VinFast at approximately $23 billion, according to a June filing with the U.S. Securities and Exchange Commission, or SEC.
SPACs are shell companies that raise capital in an initial public offering (IPO) and use the cash to merge with a private company in order to take it public, usually within two years.
VinFast was formed in 2017 as the car unit of Vietnam's largest private conglomerate Vingroup, listed on the Ho Chi Minh Stock Exchange as VIC. It makes and exports a portfolio of electric SUVs, e-scooters and e-buses across Vietnam, the United States, and, soon, Europe. Its operational manufacturing plant is in Hai Phong City, northern Vietnam.
Vuong, Vingroup and affiliates had invested $9.3 billion in the EV maker, according to the June filing.
In April, he pledged $2.5 billion to fund VinFast, including $1 billion from his personal fortune and $500 million from Vingroup.
VinFast began building a factory in North Carolina last month with a total investment of $4 billion, half of which is to be used for the first phase, with production set to start in 2025.