Ultimate magazine theme for WordPress.

EXCLUSIVE Geely unit Lotus Tech aims to raise up to $500 mln in funds – CFO

SHANGHAI, Nov 26 (Reuters) – Lotus Technology, a brand new unit of China’s Geely (GEELY.UL) set up to develop the expertise to energy Lotus sports vehicles, is planning to raise $400 million to $500 million earlier than the top of this 12 months, its chief monetary officer instructed Reuters.

Lotus Technology, a part of Group Lotus which is in flip owned collectively by the Chinese automaker and Malaysia’s Etika Automotive, intends to kick off the funding spherical earlier than Christmas, Alexious Lee mentioned in an interview.

That will give Lotus Technology a submit-cash valuation – worth of an organization after a spherical of financing from exterior traders – of $5 billion to $6 billion, Lee added.

Register now for FREE limitless entry to reuters.com

Lee mentioned the agency will launch its first product – an electrical sports utility automobile – in the primary quarter of subsequent 12 months and aims to have three fashions throughout the subsequent 5 years.

“We have gotten a lot of traction especially from international investors, because wow, this is Lotus,” mentioned Lee, including that the corporate was wanting to promote a ten% to 15% stake.

The firm will spend greater than half the brand new funds on analysis, and 30%-40% on advertising and marketing with the rest going to working capital.

Lee mentioned Lotus Technology remained on observe for a possible preliminary public providing as quickly as 2023, seemingly in New York or Hong Kong.

Lotus Cars, the maker of the Lotus Esprit, famously pushed by James Bond in 1977’s “The Spy Who Loved Me”, positions its automobiles in a section related to rival Porsche (PSHG_p.DE). It is about to open a brand new manufacturing facility in Wuhan, China subsequent 12 months.

“We are an asset light business because we don’t own our own manufacturing. It’s owned by our parent,” mentioned Lee.

Premium and luxurious automobile gross sales are rising in China as coronavirus pandemic journey restrictions depart customers in the world’s greatest automobile market with extra money to spend.

Lotus Tech’s traders embody Nio Capital, an funding agency based by the CEO of Chinese electrical automobile maker Nio Inc (NIO.N), which valued the unit at 15 billion yuan($2.35 billion) in September.

($1 = 6.3909 Chinese yuan)

Register now for FREE limitless entry to reuters.com
Editing by Jacqueline Wong

The Geely logo is seen on a rim at a car dealership in Shanghai, China August 17, 2021. REUTERS/Aly Song/File Photo

Comments are closed.