Lotus is aiming to float its recently-formed Lotus Technology division on the stock market in a move that would value it at £5 billion to £6 billion (RM28.5 billion to RM34.2 billion), Autocar reports. This was revealed by the company to potential investors during a roadshow. The roadshow – which began in China – is currently in London, where investors have been given a sneak preview of the automaker’s upcoming all-electric SUV, codenamed Type 132.
The Geely-owned brand told investors that it plans to sell 100,000 cars per year by 2028, of which 90,000 will be electric saloons and SUVs produced by Lotus Technology. The role of the new division is to accelerate innovation in the fields of batteries and energy management, electric motors, electronic control systems, intelligent driving and intelligent manufacturing.
A spokesman for the company told the publication that the purpose of the roadshow is to “take the temperature” of investors’ enthusiasm in purchasing Lotus stock. The spokesman added that the company aims to float in 12 to 24 months, but the decision over whether to do so in Asia, London or New York hasn’t yet been taken. Reaction in China to the potential float has been “strong,” he said.
The report adds that the company is reportedly favouring an initial public offering (IPO) over the special purpose acquisition company (SPAC) method of listing that was recently employed by Geely stablemate Polestar, despite the extra scrutiny involved in the more traditional route to market.
The company added that the decision to list Lotus Technology and not Lotus Cars, its traditional sports car business, is down to the ownership structure of the divisions.
Lotus Cars is 51% owned by Geely, with the remaining 49% owned by Etika Automotive, a subsidiary of Etika Strategy, which is owned by Tan Sri Syed Mokhtar Al-Bukhary, who happens to control DRB-Hicom. Etika has a smaller 30% stake in Lotus Technology.
The brand has been making plenty of inroads since its acquisition by Geely. In January, it reported that its 2021 sales results was its best since 2011, and earlier this month announced the formation of its Lotus Advanced Performance division, which is dedicated to delivering bespoke vehicles and halo projects as well as customer experiences.
The primary focus will be on electrification, which will take off when the Type 132 – rumoured to be called the Lambda – enters the scene. This will be followed by a Porsche Taycan-sized electric saloon codenamed Type 133 in 2023 and then a D-segment SUV called Type 134 in 2025. After that, the Type 135 electric sports car will arrive in 2026 to eventually replace the ICE-powered Lotus Emira. The EVs are set to be built in a new £900 million (RM5.13 billion) factory in Wuhan, China.
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So…. Lotus Cars have ‘developed’ an ev car… but have not sold even one… but floating its ev division for investments.
Sounds mighty sketchy this one.
Its like saying come invest in chickens… here we have the eggs.
https://paultan.org/2021/05/10/lotus-evija-open-booking-malaysia/
Ahem! You were saying?
Lotus is now a Chinese/Malaysian company as far as I can tell.