The index previously didn’t include Vuong’s stake within the carmaker he founded. He controls directly and not directly 99 percent of the corporate’s issued shares, mainly through his conglomerate Vingroup JSC.
Such a big stake limits the variety of shares available for trading to other investors, meaning the stock is liable to wide swings.
To be certain, other recent SPAC deals have seen eye-popping gains that ended several trading sessions after their mergers closed as investors look to make quick money on corporations with restricted shares, meaning the rise in Vuong’s fortunes could possibly be short-lived.
The carmaker was founded by Vuong in 2017 and forecasts sales of 45,000 to 50,000 units this yr. It began construction on a plant in North Carolina last month. Vuong and his relatives invested no less than $300 million in the corporate.
Vietnam’s richest man is betting $2 billion on selling cars to Americans
Vietnam’s richest man is betting $2 billion on selling cars to Americans
By this time, he had already founded a publicly traded company, Vingroup JSC, specializing in real estate, resorts, schools, shopping malls and more. The Hanoi-based company saw revenue of $4.4 billion last yr and stays a significant shareholder in VinFast.
If VinFast manages to keep up profits, it can be in a novel position given the dismal performance of other electric automobile makers which have gone public via SPAC, including Lordstown Motors Corp., Nikola Corp. and Faraday Future Intelligent Electric Inc., all of which have lost greater than 90 percent of their market value since their merger.
