Geely plans to raise about USD1 billion to help its brand, Lotus Cars, to expand into China's electric car market.
Geely has been plotting a revival for Lotus Cars since acquiring a 51 percent stake in the company in 2017, and opened an engineering and research center under this brand’s name in China
On April 14, Zhejiang Geely Holding Group Co. plans to raise about USD1 billion to help its car brand, Lotus Cars, expand into China's electric vehicle market, According to Bloomberg.
Geely is communicating with advisers to understand the investment intentions of potential investor groups, a close source revealed. The funding round is expected to value Lotus's electric car business at USD 5 billion.
Geely is still considering an initial public offering (IPO) of either Lotus or its electric car business as a whole as early as next year. Once listed, this sports car maker is expected to be valued at more than USD 15 billion.
Sources close to the matter said that Geely is still in preliminary consideration and more details are due to be disclosed in the future, including the exact size and timing. Geely declined to comment on the news and Lotus Cars did not respond.
At the China Electric Vehicle Council 100 Forum earlier this year, Geely Holdings Group Vice President and CEO of the Lotus Group Feng Qingfeng said that Lotus is positioning itself to transform from a legendary sports car maker to a fully digital car service provider. It is planning that the production factory in Wuhan will be put into operation by 2022.
Meanwhile, the top management of Lotus Cars announced that the company will release a new mid-engine sports car this summer as the last pure fuel model.
On April 13, the Wall Street Journal reported that Geely plans to list its Swedish electric car maker Polestar, which it co-owns with Volvo, on the Nasdaq next year. It will possibly raise USD 300 million. To significantly increase its valuation, one of the ways that Geely is considering going public is through a merger with SPAC, which could value Polestar at USD 40 billion.