VinFast (NASDAQ:VFS), the Vietnamese electric vehicle manufacturer, aims to raise its free float, the portion of shares available for public trading, from approximately 2% to a range of 10% to 20% by the end of 2024, according to the company’s chairperson, Le Thi Thu Thuy. The move is intended to reduce stock volatility and attract more investors. Despite a high-profile Nasdaq debut in August 2023, VinFast’s stock has experienced significant fluctuations, currently valued at nearly $16 billion compared to its initial market value of around $85 billion.
As part of its strategy, VinFast plans to conduct follow-on transactions throughout the year, bringing in additional investors, including long-only investors. Thuy emphasized the company’s commitment to increasing the free float as market conditions improve and VinFast achieves further progress.
VinFast, owned by Vietnam’s richest man, Pham Nhat Vuong, has entered the electric vehicle market amid pricing pressures, with its stock performance influenced by market dynamics. Despite not yet turning a profit, the company sold over 21,000 electric vehicles in the first three quarters of 2023. To address concerns about its stock volatility, VinFast aims to diversify its investor base through an increased free float.
At the CES trade show in Las Vegas, VinFast unveiled a prototype of its new pickup truck, VF Wild, expected for delivery in 2026. The company also announced plans to globally launch its mini electric SUV, VF 3, with deliveries in the United States scheduled for early 2025. Additionally, VinFast recently revealed plans to establish manufacturing and battery facilities in India, signaling its intent to expand its presence in various global markets.
In a leadership shuffle last week, Thuy and Vuong swapped roles, with Vuong becoming CEO and Thuy assuming the position of chairperson. Thuy highlighted that this change allows her to focus on fundraising for VinFast and aims to alter perceptions that a Vietnamese company might not possess cutting-edge technology in the electric vehicle sector. The company seeks to raise funds for its growth and tell the right narrative about VinFast’s capabilities and vision.
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