Winfast’s $ 2 billion US IPO could be delayed until 2023

Vietnam-based WinFast may delay its initial public offering (IPO) until 2023, according to Pham Nat Bhuong, chairman of parent company Vinggroup. Speaking at an annual general meeting, he explained that the move could be delayed due to market uncertainty.

“The IPO is not just about raising funds. It’s also about marketing and claiming Winfast’s position globally,” the chairman said. Reuters. Although the IPO is scheduled to take place in the fourth quarter of 2022, WinFast is ready to take it back to 2023 if need be.

Winfast is facing many of the same pitfalls as its larger and more well-established rivals. Its operations have been affected by a shortage of running chips, a problem complicated by COVID-19-related lockdowns in Shanghai that have forced semiconductor factories to shut down. It is difficult to predict when the situation will improve, but Vuong insisted that the IPO would ultimately take place “no matter how uncertain the market may be.”

The funds that VinFast will raise in an IPO will help build a $ 2 billion factory in Chatham County, North Carolina, which is expected to create about 7,500 jobs. Construction will begin as soon as the company receives the necessary permits, and by 2024 the plant will begin production of a pair of electric crossovers called VF8 (pictured) and VF9, respectively. However, executives are also looking at ways. Other sources of funding are secure, accordingly Reuters. One option that remains on the table is the US government’s Advanced Technology Vehicles Manufacturing Loan Program, a 25 billion program aimed at helping EV manufacturers.

Meanwhile, WinFast plans to start selling cars in the United States by the end of 2022.

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