Vingroup plans US listing for automaking arm

VinFast, Vingroup’s automaking arm, had flagged in April it was seeking an initial public offering (IPO) slated for the second quarter of this year.

HANOI: Vingroup JSC, Vietnam’s largest conglomerate, says it is planning to list its car unit on the United States stock market in the second half of next year, in an offering expected to raise at least US$3bil (RM13bil).

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 initial public offering (IPO) slated for the second quarter of this year.

The firm is eyeing a US$60bil (RM254bil) valuation with expectation to raise at least US$3bil (RM13bil).

In a 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 US$1bil (RM4.23bil) from global investors for VinFast in pre-IPO fundraising. ― Reuters