Lotus Technology, a division of Lotus that develops electric vehicles, has announced that it is about to go public through a SPAC deal with a Nasdaq-listed company called L Catterton Asia Acquisition Corp.
A SPAC deal, also known as a reverse merger, occurs when a private company goes public by being acquired by an already listed company, typically one formed specifically for this purpose and known in investor circles as a Special Purpose Acquisition Company (SPAC). The benefit is that it avoids the complexities (specifically, regulatory requirements) of launching an IPO.
Lotus and L Catterton’s SPAC transaction will value the combined entity at $5.4 billion. The combined entity’s shares would be listed on the Nasdaq under the ticker symbol “LOT.” The company did not specify when the transaction would be commence.
Lotus Technology stated that the funds raised from the IPO will be used to fund vehicle development and to expand its global distribution network.
Lotus Technology is based in Wuhan, China, and is in charge of the Lotus Eletre electric SUV. It is also working on two other Lotus EVs, a sedan and an SUV. It is led by Feng Qingfeng, who will remain CEO following the merger.
