ECARX, the automotive expertise firm backed by Geely Chairman Eric Li, will begin buying and selling on the Nasdaq as we speak as a publicly listed firm by way of a reverse SPAC merger that values it at $3.8 billion.
The general public providing will increase an estimated $368 million after bills, ECARX mentioned in an traders’ presentation in November. Present shareholders will retain 89 % of their fairness within the mixed firm.
ECARX’s associate within the SPAC (particular goal acquisition firm) is COVA Acquisition. In saying the merger in Might, COVA and ECARX revealed $45 million in funding from China’s Geely Holding Group, lidar sensor maker Luminar Applied sciences and Lotus Expertise, a Geely model.
ECARX pc expertise, together with software program and infotainment, is used throughout Geely and Geely-affiliated manufacturers equivalent to Volvo, Polestar, Lynk & CO and Lotus in Europe, in addition to China-based manufacturers equivalent to Zeekr and Geely, and the Sensible three way partnership with Mercedes-Benz. All advised, 12 manufacturers use its merchandise.
Learn extra: How Geely quietly constructed a far-reaching European footprint
The corporate, which was based in 2017, has about 2,000 staff and had income of $415 million in 2021, in response to the traders’ presentation.
Ziyu Shen, the CEO of ECARX, mentioned forward of the itemizing that it was vital for ECARX to develop internationally, and appeal to clients past Geely and Geely-associated manufacturers.
“The timing and itemizing within the U.S. is essential to us,” Shen advised Automotive Information Europe. “Not just for elevating cash, however we need to department out into worldwide markets and let the automotive business that we’re right here, we’re absolutely ready.”
ECARX joins numerous Geely manufacturers which have gone public in current months, as founder and Chairman Eric Li seeks to lift capital to make sure future progress.
Volvo Vehicles went public in an IPO in October 2021, whereas Polestar – initially a Volvo sub-brand – went public in a reverse SPAC merger in June of this 12 months. Zeekr, a premium electric-vehicle model, has filed for a U.S. IPO, and Lotus Expertise, a division of the sports activities automobile maker, additionally plans a public providing.
The Volvo and Polestar choices have met with combined outcomes. Volvo’s share worth was 46.3 Swedish crowns (about $4.50) on Wednesday after being listed in October 2021 at 53 crowns. Polestar’s share worth was $4.73 on Tuesday after opening at practically $13 in June; the automaker raised $1.6 billion in November to assist fund its mannequin plans by way of 2023, together with $800 million from Volvo.