Geely-backed auto SPAC deal revs up too fast

Ecarx Holdings.

31/05/2022 03:53

(The author is a Reuters Breakingviews columnist.  The opinions
expressed are her own.)
    By Katrina Hamlin
    HONG KONG, May 31 (Reuters Breakingviews) - Unprofitable
maker of tech for car cockpits, Ecarx, is going public via a
$3.5 bln sale to a blank-cheque firm, but a plan to boost its
sales beyond Li Shufu’s marques looks ambitious. The record
Chinese deal requires a leap of faith so soon after Didi’s wild
listing ride.
    Full view will be published shortly.
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    CONTEXT NEWS
    Ecarx, an auto technology startup backed by Geely Holding's
chairman Li Shufu, on May 26 said it would go public through a
merger with a blank-cheque firm in a deal that values it at $3.5
billion after factoring in cash proceeds from the deal. 
    With facilities in China and Europe, Ecarx focuses on tech
used in car chips, high-definition maps and smart vehicles. The
company was founded by Ziyu Shen, its current chairman and chief
executive officer, and Geely’s Li in 2017. Li is the company’s
largest shareholder. 
    The deal would be the largest listing of a company hailing
from the People's Republic through a special-purpose acquisition
company, according to Dealogic.   

 (Editing by Una Galani and Thomas Shum)
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