Shares of the company merging with VinFast increased by more than 70%

Black Spade Acquisition shares on the New York Stock Exchange (NYSE) jumped more than 70% in trading this morning, following news of the merger with VinFast .

At the close of trading on August 10, Black Spade Acquisition (BSAQ) shares traded on the New York Stock Exchange stopped at $18.6, up 73% from the opening. Previously, this code had jumped to a peak of $22.8, corresponding to an increase of more than 100%. BSAQ's capitalization at the end of the session on August 10 reached nearly $400 million.

BSAQ stock information after trading session on August 10. Photo: Black Spade Acquisition — BSAQ stock information after trading session on August 10. Photo: *Black Spade Acquisition*

Black Spade was founded by Black Spade Capital, an investment fund that operates a portfolio of cross-border investments and is constantly looking for opportunities to expand this portfolio.

The company is a SPAC (special purpose vehicle) listed on the NYSE American Stock Exchange. SPACs raise money through an IPO and use it to buy shares in other target companies. Going public through a SPAC merger is a recent trend because it allows companies to bypass the traditional Wall Street process.

Yesterday (August 10), Black Spade shareholders approved the business merger plan with VinFast at the Special General Meeting of Shareholders. The merger transaction is expected to be completed on August 14.

VinFast common shares and warrants are expected to begin trading on the Nasdaq Stock Market on August 15, under the new listing codes VFS and VFSWW, respectively.

Investors’ expectations for BSAQ may come from the opportunity for price increases after the merger with VinFast. After the transaction, existing shareholders of VinFast will own 99% of the merged company. These shares will be locked for a short time after listing. In case VinFast shareholders do not sell, the free-float of VFS will be very low.

On the Vietnamese stock market, Vingroup shares also increased sharply. While the general market was dominated by red, VIC opened at the ceiling price and traded around an increase of more than 6% until the end of the morning session.

In less than a month, Vingroup's shares have increased by nearly 50%. As of the end of the morning session on August 11, the group's capitalization reached nearly 12 billion USD.

VinFast is a subsidiary of Vingroup and was established in 2017. With the mission of building a sustainable future, VinFast has completely switched to producing electric vehicles by 2022. Currently, VinFast has developed a comprehensive electric vehicle ecosystem including electric SUVs (from minicars to 5 basic segments: ABCDE), electric motorbikes and electric buses.

VinFast cars are sold in Vietnam, North America and soon Europe. VinFast owns a car manufacturing facility in Hai Phong , with an automation rate of up to 90% and an annual production capacity of up to 300,000 cars in phase 1.

Minh Son

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