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
VinFast Stock Slides Below IPO Price, After Warning of Insider Share Sales!
Shares of once-hot Vietnamese EV maker, VinFast tumbled 24% dropping below their listing price,
via @FactSet #EV #ipo #vinfast pic.twitter.com/6CDgXpLSTZ— The_Journalbiz (@the_journalbiz) October 3, 2023
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.
