Home Technology Exclusive-Geely Unit Lotus Tech Aims to Raise up to $500 Million in...

Exclusive-Geely Unit Lotus Tech Aims to Raise up to $500 Million in Funds – CFO | Technology News

SHANGHAI (Reuters) – Lotus Technology, a brand new unit of China’s Geely set up to develop the expertise to energy Lotus sports activities automobiles, is planning to elevate $400 million to $500 million earlier than the tip of this yr, 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 publish-cash valuation – worth of an organization after a spherical of financing from exterior traders – of $5 billion to $6 billion, Lee added.

Lee mentioned the agency will launch its first product – an electrical sports activities utility automobile – in the primary quarter of subsequent yr and goals to have three fashions inside the subsequent 5 years.

“We have gotten loads of traction particularly from worldwide traders, as a result of wow, that 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 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 autos in a section related to rival Porsche. It is ready to open a brand new manufacturing unit in Wuhan, China subsequent yr.

“We are an asset gentle enterprise as a result of we do not personal our personal manufacturing. It’s owned by our guardian,” mentioned Lee.

Premium and luxurious automobile gross sales are rising in China as coronavirus pandemic journey restrictions depart customers in the world’s largest 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, which valued the unit at 15 billion yuan https://www.reuters.com/article/lotus-china-idCAKBN2G3089($2.35 billion) in September.

($1 = 6.3909 Chinese yuan)

(Editing by Jacqueline Wong)

Copyright 2021 Thomson Reuters.

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