ECARX, the automotive intelligence solution provider backed by Geely, announced on December 21 its shares and warrants have started trading on the Nasdaq via a SPAC merger with COVA Acquisition Corp.
The merger deal between ECARX and COVA was signed in May this year. The estimated valuation after the merger came in at around US$3.8 billion. The public offering will raise an estimated US$368 million after expenses, and existing shareholders will retain 89 percent ownership in the combined company, ECARX said in an investors' presentation in November.
ECARX was co-founded in 2017 by Shen Ziyu and Li Shufu, who is also the founder and chairman of Geely Holding. The company focuses on technologies used in smart vehicles such as automotive computing platforms. Its products include infotainment systems, smart cockpits, automotive chipset solutions, core operating systems, and integrated software stack.
The company recorded US$415 million in revenue in 2021. Up to now, ECARX’s technologies have been deployed onto 3.7 million vehicles under 12 Asian and European auto brands, including Volvo, Polestar, Lynk & Co, Lotus, ZEEKR, and Geely.
Geely brands go public
ECARX joins a number of Geely brands that have gone public in recent months, as founder and Chairman Eric Li seeks to raise capital to ensure future growth.
Volvo Cars went public in an IPO in October 2021, while Polestar – originally a Volvo sub-brand – went public in a reverse SPAC merger in June of this year. Zeekr, a premium electric-vehicle brand, has filed for a U.S. IPO, and Lotus Technology, a division of the sports car maker, also plans a public offering.
The Volvo and Polestar offerings have met with mixed results. Volvo’s share price was 46.3 Swedish crowns (about $4.50) on Wednesday after being listed in October 2021 at 53 crowns. Polestar’s share price was $4.73 on Tuesday after opening at nearly $13 in June; the automaker raised $1.6 billion in November to help fund its model plans through 2023, including $800 million from Volvo.
Post time: Jan-03-2023
