VinFast shares cause shock

Opening the trading session on October 25 on the US Nasdaq stock exchange (October 25 evening Vietnam time), VinFast Auto shares (stock code: VFS) of billionaire Pham Nhat Vuong continued to extend their sharp decline.

VinFast Auto's VFS shares traded around $4.70/share, down 4.77% from the previous session.

Accordingly, at 9:20 p.m. (Vietnam time), VinFast Auto's VFS shares were trading at around $4.7/share, down 4.77% from the previous session. Trading volume reached more than 0.5 million units.

Thus, since its listing on the Nasdaq stock exchange, this is the third session that VinFast shares have traded below the threshold of 5 USD/share. Currently, the shares of the Vietnamese electric vehicle manufacturer have lost about 87% of their value, plunging from a peak of more than 80 USD/share at the time of its debut to below 5 USD, in less than 3 months.

VinFast Auto's capitalization is at 10.98 billion USD, ranking 24th in the list of car manufacturers in the world .

When it was first listed on the US stock exchange, VFS shares made a lot of headlines in the Western press thanks to their skyrocketing price increases, at times putting VinFast Auto in the top 3 largest car manufacturers in the world by capitalization.

With the current market price, VinFast Auto's capitalization is at 10.98 billion USD, ranking 24th in the list of car manufacturers in the world.

The capitalization of billionaire Pham Nhat Vuong's electric car company is above that of South Korea's Kia, Japan's Mazda Motor Corporation... but has been surpassed by Japan's Nissan, Subaru Corporation and Suzuki.

If only counting electric car companies, VinFast ranks 7th after billionaire Elon Musk's Tesla (as of October 25, capitalization was 689.55 billion USD), China's BYD (92.69 billion USD), China's Li Auto (33.98 billion USD), Rivian (16.21 billion USD) - a company headquartered in Irvine, California (USA), NIO - a Chinese electric car company also known as the "Tesla killer" (13.57 billion USD), XPeng - an electric car company in Guangzhou, China (12.42 billion USD).

This is the 6th consecutive session since listing on the US Nasdaq stock exchange that VinFast has fallen out of the top 5 electric vehicle companies with the largest capitalization on the stock market.

If only counting electric car companies, VinFast's capitalization ranks 7th.

Although the market price has dropped below the threshold of 5 USD/share, VinFast has just signed an agreement with YA II PN fund (Yorkville) to buy VFS shares. Accordingly, VinFast has the right to issue up to 1 billion USD of VFS common shares to Yorkville.

Yorkville Advisors is an American investment management fund with over 20 years of experience investing in listed companies. Yorkville's investment criteria focus on management teams, business fundamentals and stock exchange indices.

Under the agreement, VinFast has the right to require Yorkville to purchase up to $1 billion of VFS common shares, at any time during the 36-month term of the agreement.

Source TPO

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