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Electric vehicle lucid to be listed: valued at 12 billion US dollars, abandoned by Jia Yueting

via:CnBeta     time:2021/2/17 20:49:04     readed:869

Lucid motors, an electric start-up car company previously invested in the United States by Jia Yueting, the founder of LETV holdings, recently planned to go public on a curve. According to foreign media reports, lucid plans to merge with special purpose acquisition company Churchill capital IV Corp. after the merger, the new company will be valued at $12 billion.

Churchill capital IV Corp is already in talks with investors to raise more than $1 billion, and may eventually raise $1.5 billion through the pipe model.

Lucid and Churchill capital IV Corp have agreed key terms.

Lucid, formerly known as atieva, was founded in 2007 by Bernard TSE, a former vice president and director of Tesla, and Sam Weng, a former Oracle executive. The car manufacturer will specialize in electric cars.

Many of lucid's engineers are from Tesla, a competitor. In January 2014, BAIC invested US $100 million in round C financing of lucid motors, holding 25.02% of the shares, making it the largest shareholder of lucid motors.

In July of the same year, Jia Yueting invested $200 million in lucid in his own name, becoming the second largest shareholder of the company. In 2015, BAIC transferred its shares to Jia Yueting, who became the largest shareholder of lucid motors with a shareholding ratio of nearly 40%.

In September 2018, Saudi Arabia's sovereign fund "public investment fund" (PIF) invested more than US $1 billion in lucid motors and won the majority shares.

In November 2019, lucid Motors' plan to build a factory in Arizona with a capital of US $700 million (about RMB 4.9 billion) was approved by the local government.

Lucid plans to start delivering $169, 000 in electric cars to U.S. customers in the second quarter.

However, with the outbreak of LETV's ecological crisis, Jia Yueting left the United States, and Faraday future, an electric vehicle start-up company founded by Jia Yueting, fell into financial crisis. Jia Yueting sold his shares in lucid motors.

If Jia doesn't sell these shares, once lucid goes public, Jia may return home.

Previously, Faraday future has also announced that it will be listed on the US Nasdaq stock exchange through a merger with property solutions acquisition Corp.

The merger provides about US $1 billion for Faraday future ("FF"), including US $230 million in cash held in trust by PSAC (assuming non Redemption) and US $10.00 per share over subscription of fully committed common stock pipe of US $775 million. As a financial investor, Geely holdings also participated in the listing of Faraday future spac with a small amount of investment.

After the completion of the transaction, the new company was valued at about $3.4 billion; after the merger, the company was named Faraday future Inc., and traded under the new stock code "ffie". The deal is expected to close in the second quarter of 2021.

Merger with spac has become a popular alternative to IPO for companies seeking to go public. These companies hope to pass less regulatory review and more certainty about the valuation to be obtained and the funds to be raised.

Many companies, such as Nikola and Fisker, have gone to the capital market in this way.

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