Vietnamese automaker VinFast's valuation exceeds $85 billion after entering the market

Vietnamese VinFast Auto Ltd. skyrocketed after its debut as a public company, raising its market capitalization above that of General Motors Co. and Ford Motor Co.

VinFast, which went public as part of the SPAC deal, is worth about $85 billion after the Vietnamese company's shares soared to $37.06 in New York on Tuesday.

VinFast debuted on the Nasdaq Global Select Market under the symbol VFS due to a flurry of trading and a halt in volatility following the completion of a merger with special acquisition company Black Spade Acquisition Co.

The stunning valuation makes VinFast more expensive than BMW AG alone and more than Ford and Rivian Automotive Inc. combined, in terms of market capitalization, lagging behind the market value of BYD Co Ltd.

However, it should be noted that VinFast is a low circulation company. A small number of shares are available for trading - only 1.3 million SPAC shares remain after redemption - which means that the movement and value of the shares are prone to large fluctuations.

Regulatory documents show that Pham Nath Vuong, Vietnam's richest man and founder of VinFast, controls about 99% of the company, in part through shares held by his wife and Vingroup LLC. This means that the vast majority of stocks are locked up and out of reach for investors who would benefit from Tuesday's rally.