(Bloomberg) — After an astronomical rally on its first trading day, VinFast Auto Ltd. Now to the ground – erasing a large chunk of its billionaire founder’s fortune.
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The Vietnamese electric car maker has fallen sharply over the past three trading days in New York, chipping away at more than half of the 255% gain it made on Tuesday when it listed on Nasdaq Global Select Market.
Chairman and founder Pham Nhat Vuong, who controls all but a handful of the company’s shares, has seen his net worth drop nearly 53% to $21 billion, according to the Bloomberg Billionaires Index.
VinFast’s market capitalization also slumped, dropping to $37.4 billion from its peak of $85 billion, when it was briefly ahead of General Motors despite being on track to generate fewer sales this year than GM does in a week.
Large fluctuations in stock prices were expected. Vuong controls 99% of VinFast shares, mostly through his business conglomerate, Vingroup JSC. This leaves a small portion of other investors to trade, which means that even relatively small transactions can have a significant impact on the price.
However, Vuong doesn’t hurt. Since Bloomberg Index didn’t account for his stake in VinFast until the company completed its merger with the blank-check company this week, he’s still richer than he was before the listing.
On paper, he earned close to $40 billion on his first trading day – one of the biggest leaps in wealth the index has ever recorded.
— with assistance from Tom Maloney.
(Updates to reflect Friday trading)
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Vietnam’s VinFast Auto Ltd. made headlines with an impressive debut on the Nasdaq Global Select Market, only to see its shares plummet in the following days. This sharp decline has resulted in a significant loss for the company’s billionaire founder, Pham Nhat Vuong.
Following its initial surge, VinFast’s shares have fallen dramatically, erasing more than half of the gains it made on its first day of trading. As a result, Vuong’s net worth has dropped by nearly 53%, now standing at $21 billion according to the Bloomberg Billionaires Index. The company’s market capitalization has also taken a hit, dropping to $37.4 billion from its peak of $85 billion.
Despite these losses, Vuong remains one of the richest individuals in Vietnam. His control over 99% of VinFast shares through his conglomerate, Vingroup JSC, means that even small transactions by other investors can have a significant impact on the stock price. This level of control also contributed to the large fluctuations in VinFast’s share price following its listing.
While the recent losses may be significant, Vuong’s overall wealth remains higher than it was before VinFast went public. The dramatic increase in his net worth on the company’s first trading day was one of the largest recorded by the Bloomberg Billionaires Index.
The rollercoaster ride of VinFast’s stock price serves as a reminder of the volatility of the market, especially for newly listed companies. Despite the recent setbacks, Vuong’s position as a billionaire and key player in Vietnam’s business landscape remains solid. Only time will tell how VinFast and its founder will weather this storm and what the future holds for the electric car maker.
