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Lotus to list new EV unit on the stock market at a £5-6Bn valuation

Date: February 23, 2022 Sunil Jha Sunil Jha
Lotus to list new EV unit on the stock market at a £5-6Bn valuation 
Lotus Cars, the British automotive firm, is reportedly moving forward with plans to list its subsidiary, Lotus Technology, on the stock market. It is being estimated by the company that the move would value the unit at £5-6 billion.



Reports cite, Lotus is currently in the middle of a roadshow that began in China and is presently in London to offer possible investors a sneak peek at its electric SUV, which is set to be released next year and is codenamed Type 132.



By 2028, the Geely-owned company expects to sell 100,000 vehicles per year, with 90,000 of those being electric SUVs and saloons made by Lotus Technology.



According to sources, the goal of the roadshow is to ‘take the temperature’ of investor interest in Lotus stock.



Even with the additional scrutiny needed in the more conventional route to market, the firm prefers an IPO (initial public offering) in place of the SPAC (special purpose acquisition company) mode of listing, which was used by Geely stablemate Polestar recently.



Lotus plans to go public in 12 to 24 months, but it claims that it has not decided whether to do the same in London, Asia, or New York.



As per sources, China's response to the possible float has been ‘strong’.



According to the firm, the move to list Lotus Technology rather than Lotus Cars, which focuses primarily on the brand's conventional sports car business, stems from the divisions' ownership structure.



Lotus will follow up the Type 132's launch in the coming year with the Type 133, a Porsche Taycan-sized electric saloon, in 2023, which would then be followed by the launch of a ‘ground-breaking’ smaller SUV in 2025. The Type 135 electric sports car will debut in 2026 and will ultimately replace the upcoming ICE-powered Lotus Emira.



In Wuhan, China, a latest £900 million facility will be used to produce electric SUVs and saloons.



The factory, which is owned by Geely, has the potential to produce 150,000 automobiles each year for sale in China and other countries across the world. Like Lotus's headquarters and old manufacturing site in Hethel, Norfolk, it too includes a test track.



Source credit: https://www.autocar.co.uk/car-news/business-finance-and-corporate/lotus-float-new-ev-division-stock-market

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Sunil Jha

Sunil Jha has been a part of the content industry for close to two years. Having previously worked as a voice over artist and sportswriter, he now focuses on writing articles for newsorigins.com, across a slew of topics, ranging from technology to trade and finance. With a business-oriented educational background, Sunil brings forth the expertise of deep-dive research and a strategic approach in his write ups.