Toronto, Ontario — It’s time for your weekly automotive business economics report. This weekly Tuesday Ticker covers VINFast’s anticipated initial public offering announcement, plus the federal government’s rumoured response to the U.S. Inflation Reduction Act.
VFS—coming soon to a ticker near you
Vietnam-based EV maker VinFast revealed last week that it has filed for an initial public offering in the United States, listing ordinary shares on the Nasdaq.
The company will list shares under the ticker symbol VFS. The IPO requires VINFast to convert to a Singapore public limited company, it said and will be known as VinFast Auto Ltd.
The number of shares to be offered and price ranges have yet to be revealed.
The IPO was initially set for Q4 of this year, though VinFast’s parent company said in May 2022 that the IPO could potentially be delayed due to market uncertainty.
VINFast offers vehicles to the North American market in the U.S. and Canada; it shipped its first batch of cars to the United States in late November.
The company previously filed for a confidential IPO with U.S. securities alongside the preparation of a multi-billion-dollar investment intended for a U.S. VINFast factory.
Ottawa deals its cards
The federal government is reportedly set to introduce subsidies for the production costs of large EV battery producers in hopes it will convince the parties to build plants on Canadian soil.
The new measures—dubbed a “game changer” for Canada’s industrial policy—could see Ottawa fund the operating expenses of battery and battery component manufacturers through subsidies linked to the number of units produced. Previous government programs have been based on one-time capital expenditures, like the construction or revamping of production facilities.
The measures could act as a counter to the recently-adopted American law, the Inflation Reduction Act, that experts say poses a threat to the Canadian industry. The act promises US$270 billion in climate and clean energy investments. Canadian industrial and manufacturing experts say the U.S.’s ambitious climate plan could trigger a wave of investment toward States-based manufacturing.
“The U.S. has turned on a shop vac to suck up incentive and we’re standing here with a dust buster,” Matt Poirier, senior director of Manufacturers and Exporters told the House of Commons in early November, referring to Inflation Act measures.
