HANOI, Dec 45 (Reuters): Vingroup JSC, Vietnam's largest conglomerate, said on Saturday (Dec 4) it is planning to list its car unit on the US stock market in the second half of next year, in an offering expected to raise at least $3 billion.
Just last month, an official said the listing may happen within the next couple of years, as the company joins a growing list of electric vehicle startups taking advantage of investor excitement to raise funds.
VinFast, Vingroup's automaking arm, had flagged in April it was seeking an IPO slated for the second quarter of this year, eyeing a US$60 billion valuation with expectation to raise at least US$3 billion.
In Saturday's statement, Vingroup said it had set up a Singapore-based holding company owning a stake in Vinfast's operations in Vietnam to fuel the IPO process.
"The new company, VinFast Singapore, is a step to turn VinFast into a global company and prepare for its US IPO," the company said in the statement. "Vingroup will be a major shareholder of VinFast Singapore."
On Thursday, Reuters exclusively reported Vingroup was seeking $1 bln from global investors for VinFast in pre-IPO fundraising.
VinFast became the country's first fully fledged domestic car manufacturer when its gasoline-powered models built under its own badge hit the streets in 2019.
VinFast is betting big on the US market, where it hopes that its electric SUVs and a battery leasing model will be enough to woo consumers away from the likes of Tesla and General Motors.
It is targeting global electric vehicle sales of 15,000 next year, down from its previous goal of 56,000 due to the global semiconductor chip shortage. - Reuters