Newark’s e-vehicle start-up Lucid Motors seeks US listing via SPAC deal

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Newark’s e-vehicle start-up Lucid Motors seeks US listing via SPAC deal

Lucid Motors, the Newark, California-based e-vehicle start-up which is expected to bring forth a production line for its first electric vehicle Lucid Air as early as by late-2021, had been in an advanced staged talk to go public through a merger deal with an SPAC (Special Purpose Acquisition Company) backed by the veteran Wall Street dealmaker Michael Klein, a Bloomberg News report published late on Monday had unveiled citing sources who wished to remain anonymous given the scale of sensitivity of the issue.

On top of that, the Bloomberg News report had also quoted unnamed sources familiar with the deal as saying that the American automotive company primarily engaged in developing e-vehicles, had already hired financial advisers to work on the deal which could value the company up to $15 billion.

Lucid Motor seeks public listing via merger with Klein-backed SPAC

Aside from that, followed by the reveal of Bloomberg News report, a spokesperson for Lucid Motors said that the e-vehicle start-up founded back in the 2007s, had always made its intents clear to go for a US public listing at some point adding the California-based electric vehicle start-up remained riant to start off a production line for its first luxury e-vehicle model, Lucid Air, as early as by Spring 2021 despite growing disruptions on global supply chain networks.

Alongside this, the Bloomberg News report had told that the e-vehicle start-up was contemplating a potential merger with Klein’s Churchill Capital Corp IV to take the company public. Notably, blank-check firms or SPACs are shell companies that could be capitalized on taking a company public following a merger or acquisition by sidestepping a conventional IPO (Initial Public Offering) route, however SPACs are allowed to raise funds through IPOs to finance an acquisition without detailing their investors which companies they would be pursuing.

Besides, two Klein-backed blank-check firms were set to raise up to $700 million in IPOs on early-2021, regulatory filings with US SEC (Securities and Exchange Commission) had unveiled earlier in the day.