Alphaville presents: Pin the valuation on the electrical automobile SPAC


Obtain free Market bubbles updates

In a chunk on Monday, Alphaville contributor Craig Coben warned about VinFast, the Vietnamese car-maker that floated by way of SPAC final week. He wrote:

The press articles all point out that the chair controls 99 per cent of newly listed VinFast. However that’s not simply an apart: it’s the story. That is no standard de-Spac; relatively it resembles a backdoor itemizing into an empty listed shell. And the inventory worth is simply an arbitrary quantity on a display screen, not the market’s judgment of the corporate’s value…

VinFast has lower than one per cent free float, and buying and selling volumes are low and falling. A inventory market itemizing ought to present worth discovery and liquidity; VinFast shares have neither.

How’s it been doing since? Nicely, uh:

FTAV is as enthusiastic about this well-functioning market as anybody, so we suggest just a little recreation: the Alphaville reader who can finest guess VinFast’s closing market capitalisation for as we speak (Wednesday) will win a free T-shirt from our swag shop.

To enter, merely e-mail your title and guess to alphaville@ft.com earlier than US markets open (2:30pm UK time/9:30am EST) as we speak.

We’ll let you realize the winner after US markets shut tonight.

UPDATE — CLOSED FOR ENTRIES: Time’s up. We’ve had a slew of guesses, with a imply common of about $60bn and a modal common of $69.420bn. Let’s let capitalism do its factor…

UPDATE 2 — IT’S QUIET… TOO QUIET:

UPDATE 3 — WOMP WOMP: So, uh, VinFast barely moved, selecting a market cap of $85.4bn per Google (Yahoo! makes it $85.9bn, Alphaville isn’t at the moment close to a Bloomberg Terminal):

…which suggests WE HAVE A WINNER — a reader who guessed slightly below $90bn. Whereas we wait to see in the event that they need to be recognized, listed below are the important thing stats that you must know:

— Highest guess: $131.5bn
— Lowest guess: $37bn
— Imply guess: $62.5bn
— Median guess: $69.4bn

Sadly you had been principally manner off, and the environment friendly markets speculation has been completely vindicated.

Additional studying
Beware, a 2023 Spac oddity

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