Lotus electric-car division to become publicly-traded company

A division of British sports-car specialist Lotus will soon be a publicly-traded company on the Nasdaq stock exchange.

Approximately 10 per cent of Lotus Technology – which is responsible for non-sports-car models from the Lotus brand, such as the upcoming Eletre electric SUV – will be available for the public to trade.

Lotus Cars, which is responsible for the brand’s sports-car line-up, will remain a private company.

With a valuation of $US5.4 billion ($AU7.76 billion), the current owners of Lotus Technology – which includes Chinese car giant Geely – will continue to hold 89.7 per cent of the company.

Unlike Porsche, which went public in late 2022 through an initial public offering (IPO), Lotus is instead using a ‘SPAC’ to fast track its entry into the share market.

A SPAC – which translates to a Special Purpose Acquisition Company – is a shell company created purely to exist on a stock exchange, so it can merge with another private company wanting to go public.

While the process of organising a conventional IPO can take six months to a year, merging with a SPAC can reduce that timeframe significantly.

“Lotus Tech intends to use the net proceeds … for further product innovation, next-generation automobility technology development, global distribution network expansion and general corporate purposes,” the company wrote in a statement.

Lotus Technology’s Wuhan plant is set to open in late 2023 and will produce up to 150,000 vehicles annually, while Lotus Cars will continue to develop and manufacture sportscars such as the Emira and Evija from its base in Hethel, UK.