VinFast shares surged by over 68%.

SGGP August 16, 2023 09:54

The electric vehicle company's market capitalization after its first trading session in the US reached $85.5 billion, 3.7 times its initial valuation of $23 billion and more than three times its re-valuation after the successful merger with Black Spade.

At the close of trading on August 15th in the US, VinFast 's VFS stock closed at $37.06, a 68.4% increase compared to its initial public offering price ($22). The trading volume on the first day reached nearly 6.8 million shares.

With this figure, the market capitalization of this electric vehicle company after its first trading session in the US reached $85.5 billion, 3.7 times its initial valuation of $23 billion and more than 3 times its revaluation after the successful merger with Black Spade. In fact, the $85.5 billion valuation has placed VinFast in the top 5 of the world's largest automotive manufacturers by market capitalization. This figure also helps the Vietnamese electric vehicle company surpass many giants such as Mercedes-Benz, BMW, Volkswagen, Honda, and Ford.

The VinFast listing will undoubtedly create a major boost for Vingroup . The revaluation by investors could positively impact Vingroup because the stake in VinFast alone (51%) is worth over $43 billion, far exceeding the group's current market capitalization, not to mention other assets and subsidiaries which are also very valuable. According to the sum-of-parts method (SOTP), Vingroup can be considered undervalued.

Source: https://www.sggp.org.vn/co-phieu-vinfast-tang-hon-68-post701770.html