By Bailey Lipschultz | Bloomberg
Vinfast Auto Ltd. shares skyrocketed 130%, adding an eye-popping $53 billion in market value to the Vietnamese electric automaker on Tuesday, extending a raucous week since it went public.
The stock’s now 280% surge from an Aug. 15 debut has vaulted its market capitalization beyond $93 billion, making it bigger than BYD Co Ltd. and putting its paper value in line with that of General Motors Co. and Ford Motor Co. combined. Tuesday’s rally came as more than 12 million shares changed hands, with investors flipping the stock that has a small portion of shares available for trading.
See more: EV maker VinFast opens 4 more Southern California stores
VinFast, with its U.S. base in Los Angeles, continues to be the top-performing company that went public via a special-purpose acquisition company merger, trading above $40 a piece after its tie-up with Black Spade Acquisition Co. Just 1.3 million shares are currently available for trading, meaning investors should brace for volatility as lower-float stocks are prone to see big swings.
Additionally, many companies that merged with blank check firms have had rallies that fizzle out in the days and weeks after a deal closes, when the social media buzz subsides. De-SPACs that have made their debut this year have seen a median slump of about 45%, with 14 of them wiping out more than 80% of their value, according to data compiled by Bloomberg.
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