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VinFast Stock Slides Below IPO Price

Shares of once-hot Vietnamese electric-vehicle maker VinFast are down about 5% Tuesday, a day after they tumbled 22% and dropped below their listing price.

Tweet on VinFast stock fluctuation

Factset chart on Vinfast

VinFast recently traded near $9.30, down from a peak above $80 hit in late August after heavy withdrawals by investors in the company’s SPAC deal left very few shares available for trading. That meant a tiny amount of buying pushed up the stock, giving the illusion that Wall Street had high hopes for the company.

The recent slide came after the company said in a Monday filing that insiders will sell some of their shares moving forward, increasing the supply of stock in what has been a supply-constrained market. Such sales are a normal part of SPAC deals but can lead to big swings in shares of companies like VinFast that have few shares available to trade.

It’s the latest example of the boom-bust market in SPACs, a risky alternative to traditional IPOs.


Image: Vinfast