The Geely subsidiary Lotus has announced that it intends to list its electric car division Lotus Technology on the stock exchange. Accordingly, it is planned to list on the US stock exchange Nasdaq through a merger with the L. Catterton Asia Acquisition Corporation, which is already listed there.
The plans, which were leaked about a year ago, are now becoming concrete with an official announcement from the company. The business combination implies an estimated enterprise value of approximately $5.4 billion for Lotus Tech, according to the announcement. Lotus has not yet announced a specific date for the IPO.
A US IPO via a SPAC merger has become a popular way for a fast-growing company to get listed on the Nasdaq. The regular route can take up to two years. Therefore, a business field has emerged for companies that go through the lengthy process after founding with investor funds. Since the purpose of this then listed company without its own core business is to merge with a company that is not yet listed and thus help it to go public in the short term, they are also referred to as a Special Purpose Acquisition Company or SPAC for short.
In the case of Lotus Tech, it is set to merge with L Catterton Asia Acquisition Corporation, which Lotus says is affiliated with L Catterton, a “leading global consumer-facing investment firm.” Lotus Tech’s current management team, led by CEO Qingfeng Feng, is expected to continue leading the combined company. “We believe the proposed business combination and listing will help position Lotus Tech as a leading global luxury EV company and allow us to further execute our strategy, accelerate our growth and most importantly, advance our mission, which to steer the industry towards a more sustainable future,” said Qingfeng Feng.
Lotus Technology started production of its first electric model, the Eletre, in the Chinese city of Wuhan last year. The plant there is designed for an annual capacity of 150,000 vehicles. However, the plant itself is owned by Geely Holding, which will continue to hold shares in Lotus Tech. According to the announcement, Lotus intends to continue to concentrate on its “asset-light business model” even after the IPO. That means she takes care of the development and sale of the vehicles. For the production of the vehicles, plants and facilities of another company are used – in this case Geely.
The Lotus Eletre is expected to be delivered in China before the end of the first quarter of 2023 and in the EU and UK later in the year. Prices have already been announced. In the future, Lotus plans to offer the Eletre in the US and the rest of the world as well.
prnewswire.com
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