Another Chinese Car Tech Company Aspires To Go Public Via SPAC Merger After DiDi's Debacle

  • Billionaire Li Shufu-backed car technology company Ecarx Holdings Inc looks to go public via a special purpose acquisition company (SPAC) merger with Cova Acquisition Corp COVA.
  • Ecarx, founded in 2017 by Geely Automobile Holdings Ltd's GELYY Shufu and Ziyu Shen, develops software and hardware like digital cockpit and infotainment systems for cars, Bloomberg reports.
  • Ecarx serves both combustion-powered vehicles and automated and electric cars.
  • The combined company will be worth $3.8 billion. The transaction includes a $45 million investment from Geely, Luminar Technologies, Inc LAZR, and Lotus Technology. 
  • Ecarx would be the most prominent Chinese company to list in the U.S. following DiDi Global Inc's DIDI debacle.
  • Price Action: COVA shares closed at $9.80 on Wednesday.
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