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Wealth of Vietnam’s richest man Pham Nhat Vuong balloons by more than 8 times to US$44.3 billion on VinFast debut
- EV maker VinFast Auto’s shares surged 255 per cent on its market debut, boosting the wealth of its billionaire chairman Pham Nhat Vuong
- But the rise in Vuong’s fortunes may be short lived if his company follows the trend of others listed by special purpose acquisition (SPAC)
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VinFast Auto Ltd. soared on its first day in the public markets, boosting the fortune of its billionaire founder.
The electric carmaker’s shares surged 255 per cent on Tuesday, adding US$39 billion to the net worth of chairman Pham Nhat Vuong and pushing the company’s market capitalisation above that of industry giants General Motors Co. and Mercedes-Benz Group AG. The fortune of Vietnam’s richest man now stands at US$44.3 billion, according to the Bloomberg Billionaires Index.
The index has not previously included Vuong’s stake in the carmaker, which he founded. He directly and indirectly controls 99 per cent of the company’s outstanding shares, mostly through his conglomerate, Vingroup JSC.
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That large stake limits the shares available for other investors to trade, meaning the stock is prone to large swings.
VinFast scrapped its plans for a normal initial public offering and opted for a special purpose acquisition company (SPAC) listing after investor appetite for money-losing start-ups waned over the past year. Instead, it agreed to merge with blank-cheque company Black Spade Acquisition Co., founded by casino mogul Lawrence Ho.
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