Lotus Technology Inc., the dynamic arm of the Geely-owned Lotus Group based in China, has announced a major financial milestone with funding agreements totaling approximately $870 million. This substantial financial influx sets the stage for its upcoming initial public offering (IPO) in the United States.
This investment, a blend of private investment in public equity financing and convertible notes, propels Lotus Tech to a significant position within the electrification and luxury vehicle sectors. GlobalData’s deals database indicates these agreements precede Lotus Tech’s intended merger with L Catterton Asia Acquisition Corp (LCAA), a special purpose acquisition company (SPAC) created by affiliates of L Catterton and supported by LVMH Louis Vuitton Moet Hennessy.
Headquartered in Wuhan, Lotus Tech aims to debut on the Nasdaq through this merger, reflecting its strong market stance and innovative approach in the luxury electric vehicle arena.
These funding agreements place Lotus Tech at a robust pre-money valuation of US$5.5 billion, showcasing the firm’s solid growth prospects. Post-merger, investors are expected to receive public shares, bolstering Lotus Tech’s global market presence.
Qingfeng Feng, CEO of Lotus Tech, expressed gratitude for the trust shown by investors and strategic partners. “As a leader in the electrification of luxury vehicles, Lotus Tech is poised to leverage the segment’s rapid growth as we cater to unmet market needs. The US$870 million of funding commitments we have received this year demonstrates global investors’ confidence in Lotus Tech’s performance and growth potential. We are thankful for our strategic collaborators’ and investors’ enthusiasm about accelerating our progress as Lotus Tech moves toward completing the planned business combination with LCAA,” he stated.
The raised capital is earmarked for advancing Lotus Tech’s development of cutting-edge automobility technologies, driving product innovation, expanding its global distribution network, and supporting general corporate needs.
Once the merger is finalized, Lotus Tech will emerge as a publicly listed company on Nasdaq, retaining its name ‘Lotus Technology Inc.’ Its ordinary shares, represented by American Depositary Shares (ADS), are expected to trade under the ticker ‘LOT’.
Lotus Tech, serving as the technology, sales, and marketing division of Lotus, is preparing for the launch of its first all-electric hyper SUV, Eletre. Initial deliveries in China, the EU, and the UK are projected for 2024, with plans for broader distribution to the U.S. and other global markets, leveraging Lotus’s extensive international reach.
This strategic move marks a pivotal moment for Lotus Tech, reflecting its dedication to pioneering luxury electric vehicles and expanding its global footprint.
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