EV maker VinFast’s stock bounces off record low after equity funding agreement of up to $1 billion

Shares of VinFast Auto Ltd.
VFS,
-2.46%
bounced 1.8% in premarket trading Friday, after the Vietnam-based electric vehicle maker announced a equity-funding agreement of up to $1 billion. The standby subscription agreement gives VinFast the option to require YA II PN Ltd., known as Yorkville, to subscribe for up to $1 billion worth of VinFast ordinary shares at any time over the next 36 months. VinFast’s stock had tumbled 28.7% amid a four-day losing streak to close Thursday at a record low of $5.69. “This new source of equity funding provides us with valuable optionality and access to capital to continue to expand our business on a global scale,” said VinFast Chief Executive David Mansfield. “While we are under no obligation to draw on the full amount, the transaction aligns with our goals of opportunistic capital raising while adding liquidity to our shares over time.” VinFast shares have plunged 44.6% over the past three months through Thursday, while the Global X Autonomous & Electric Vehicles ETF
DRIV,
-0.75%
has dropped 18.3% and the S&P 500
SPX,
-0.10%
has lost 5.7%.