EV maker Lotus Tech closes up modestly in Nasdaq debut after SPAC merger

Lotus Technology

23/02/2024 21:18

By Echo Wang and Lance Tupper
       NEW YORK, Feb 23 (Reuters) - Shares of Lotus Technology
 LOT.O  closed up 2% in their Nasdaq debut on Friday, recouping
earlier losses, after the luxury electric car maker completed
its merger with a blank-check acquisition company backed by
private equity firm L Catterton.
    The American Depositary Shares, which began trading with the
new ticker "LOT", ended at $13.80 after falling as low as
$10.12. About 190,000 shares traded. The SPAC closed at $13.51
on Thursday.
    Lotus Technology was valued at about $7 billion in the deal
with L Catterton Asia Acquisition Corp  LCAA.O , the special
purpose acquisition company backed by Catterton. It is part of
British sports car maker Lotus Group which is in turn owned
jointly by Chinese automaker Geely  GEELY.UL  and Malaysia's
Etika Automotive. 
    Lotus Technology is headquartered in the central Chinese
city of Wuhan and produces cars through a partnership with
Geely. It designs, develops and sells luxury lifestyle EVs under
the British brand Lotus founded in 1948.
    "At this point in time, being able to access capital market
through the IPO... is an acceleration for Lotus to expand
globally," said Qingfeng Feng, chief executive officer of Lotus
Tech. 
    Similar to other SPAC mergers, about 97% of LCAA
shareholders redeemed their shares, leaving the trust's account
with roughly $11 million. Typically, a stock is prone to
volatility if only a small amount of shares are publicly
available.
    Lotus Technology has launched two EV models, including its
first fully electric sports utility vehicle, Eletre. The model
started delivery in China in 2023 and followed in the UK and the
European Union, the company said. It is expecting to deliver
cars in the U.S. later this year.  
    The company secured $870 million in financing ahead of its
merger with LCAA.

 (Reporting by Echo Wang and Lance Tupper in New York; Editing
by Cynthia Osterman)
 ((E.Wang@thomsonreuters.com; +13322191785; Reuters Messaging:
@deer_echo_))