Vingroup, Vietnam’s conglomerate, is considering a US initial public offering (IPO) of its automaker VinFast that could raise US$2 billion, according to Bloomberg. 

VinFast factory in the northern port city of Hai Phong. Photo: FPT

The Vietnamese automaker is working with advisers on the potential offering that could take place as soon as the second quarter and raise up to US$3 billion.

A spokesman from Vingroup refused to confirm the information.

The company is seeking a valuation of at least US$50 billion after a listing, Bloomberg wrote.

The US$2-billion IPO would make it the largest-ever market capitalization by a Vietnamese company in the US. In 2018, Vinhomes, a subsidiary of the Vingroup, also launched an equity issue of US$1.4 billion. 

Entering the auto industry three years ago, VinFast auto facility is manufacturing and assembling electric vehicles after receiving more than 3,000 orders during the first first 12 hours of sale.

VinFast targets to become a global smart electric car company and the US market is one of the first international markets that the company will focus on. Billionaire Pham Nhat Vuong, Chairman of Vingroup, said that he would pour US$2 billion into VinFast to export cars to the US market.

Besides the launch of research and development centers in Australia, Germany and the US, the automaker plans to build an automobile factory in the US with the aim of selling electric cars in California next year.

The company is also planning sales in Canada and Europe in 2022. 

The Vietnamese automaker sold nearly 30,000 vehicles last year. The company forecasts sales of more than 45,000 units in 2021.