GSM Hong Kong IPO targets $2B–$3B valuation

Hong Kong listing discussions put GSM’s funding model in the spotlight

Green and Smart Mobility, the Vietnamese electric-vehicle taxi operator known as GSM, is in early preparations for a Hong Kong share sale that would place the company in a $2 billion to $3 billion valuation range on an enterprise basis, including debt. Planning is oriented to a late 2026 to early 2027 window, with banks potentially appointed as early as the first quarter of 2026, and fundraising discussions centered on at least $200 million.

A first Vietnamese issuer in Hong Kong would test cross-border appetite

The deal would be positioned as the first Vietnamese firm to list in Hong Kong, widening the exchange’s push to attract overseas issuers. The timing matters because Hong Kong has reclaimed its role as a major equity capital hub; roughly $75 billion has been raised there in 2025, more than triple 2024 and the highest since 2021. A stronger issuance backdrop usually reduces the new-issue discount and supports tighter bid-ask spreads after listing.

The taxi fleet is also a channel for VinFast sales, and investors track the mix

GSM was founded in 2023 by Vingroup chair Pham Nhat Vuong and operates Vietnam’s largest all-electric taxi fleet under the Xanh SM brand, using VinFast vehicles exclusively. That linkage has supported VinFast’s domestic deliveries while drawing scrutiny to VinFast related-party sales as a proxy for underlying demand. VinFast deliveries to GSM accounted for 72% of total volume in 2023, then dropped to 26% by the third quarter of 2025, lowering concentration risk but raising expectations for broader retail and corporate demand outside the fleet.

Expansion beyond Vietnam turns the story into a Southeast Asia ride-hailing expansion bet

GSM has already expanded into Laos, Indonesia, and the Philippines, and it is exploring entry into India. The pitch shifts from a Vietnam EV taxi fleet narrative to a Southeast Asia ride-hailing expansion platform where returns depend on utilization, charging access, driver supply, and local fare rules. Proceeds from a GSM Hong Kong IPO are expected to fund fleet purchases, charging partnerships, and market-entry costs that land before unit economics mature.

Competitive share is large, but margin hinges on fare discipline and trip density

GSM’s closest rival in Vietnam is Grab and market-share estimates vary by methodology. One industry data set put GSM at about 40% share in the first quarter of 2025 versus Grab at 32%, while a separate consumer survey estimated Grab at 55% and GSM at 35%. For markets, the key mechanism is cost per completed trip: incentives, maintenance, electricity, and depreciation must be covered by fares, so aggressive pricing can erase the advantage of scale even when market share rises.

Liquidity is a valuation input, not a marketing line

VinFast’s U.S. listing has traded with limited turnover because of a small free float, and GSM’s Hong Kong route is being framed internally as a path to deeper liquidity and a more natural regional investor base for mobility. Liquidity affects whether an issuer can become indexable, how quickly institutions can enter, and whether follow-on offerings are feasible without steep discounts. That feeds into the cost of capital for a fleet-heavy business that must buy vehicles up front and recover cash over time.

The market read-through runs through the parent’s balance sheet and funding costs

GSM sits inside the broader Vingroup ecosystem, which has continued to finance VinFast’s international expansion and product development. A successful IPO would diversify funding sources and can narrow a Vingroup funding risk premium, particularly if investors see it reducing the need for repeated capital injections from the parent. Vingroup has said the valuation being discussed does not reflect the scale of its wider ecosystem, signaling sensitivity to how public markets might benchmark the group.

What investors will test before paying a premium multiple

The first test is cash conversion: fleet growth is capital intensive, and an enterprise value that includes debt is only credible if utilization supports steady operating cash flow after depreciation. The second is supplier concentration; exclusive use of one vehicle brand simplifies procurement but ties operating costs to one service network and concentrates residual-value risk. The third is regulatory exposure across markets, since licensing, fare caps, and charging access can change quickly and shift economics within a single quarter.

Three paths for pricing into 2026–2027

The base case is a measured timetable with adviser appointments in early 2026 and execution tied to Hong Kong market conditions, leaving valuation anchored near the middle of the proposed range. The upside scenario is faster cross-border scaling with high utilization and a free-float structure that attracts large funds, allowing pricing near the top end while easing borrowing spreads. The downside scenario is softer risk appetite for mobility listings or weaker trip economics that forces a smaller raise at a lower valuation and keeps the risk premium elevated.