The company will launch its first product - an electric sports utility vehicle - in the first quarter of next year and aims to have three models within the next five years. Lotus Technology, a new unit of China's Geely set up to develop the technology to power Lotus sports cars, is planning to raise $400 million to $500 million before the end of this year, its chief financial officer told Reuters.

Lotus Technology, part of Group Lotus which is in turn owned jointly by the Chinese automaker and Malaysia's Etika Automotive, intends to kick off the funding round before Christmas, Alexious Lee said in an interview. [1]

Figure 1. Geely Unit Lotus Tech Aims to Raise Up to $500 Million In Funds: CFO

Figure 1 shows this would give Lotus Technology a post-money valuation — a company valued after a round of financing from outside investors — of $5 billion to $6 billion, Lee said. Lee said the firm will launch its first product — an electric sports utility vehicle — in the first quarter of next year and aims to build three models over the next five years.

“We’ve got a lot of traction, especially from international investors, because wow, this is Lotus,” Lee said, adding that the company was looking to sell a 10% to 15% stake. [2]

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 stated Lotus Technology remained on observe for a possible preliminary public providing as quickly as 2023, doubtless 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 automobiles in a section just like rival Porsche. It is about to open a brand-new manufacturing facility in Wuhan, China subsequent 12 months. [3]

Premium and luxurious automotive gross sales are rising in China as coronavirus pandemic journey restrictions go away shoppers on this planet’s greatest automotive 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 in September. [4]

References:

1. https://www.carandbike.com/news/geely-unit-lotus-tech-aims-to-raise-up-to-500-million-in-funds-cfo-2853458
2. https://news.bharattimes.co.in/geely-unit-lotus-tech-aims-to-raise-up-to-500-million-cfo-2/
3. https://dksnewsonline.com/2022/03/30/geely-unit-lotus-tech-aims-to-raise-up-to-500-million-in-funds-cfo-2/
4. https://harpianews.com/geely-unit-lotus-tech-aims-to-raise-up-to-500-million-in-funds-cfo/

Cite this article:

Thanusri swetha J (2022), Geely Unit Lotus Tech Aims to Raise Up to $500 Million In Funds: CFO, Anatechmaz, pp. 232