Mobility technology player ECARX floats shares on Nasdaq
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E-mail Xinhua, December 22, 2022
The management, shareholders and guests of ECARX Holdings attend a ceremony to ring the opening bell at Nasdaq in New York City, the United States, on Dec. 21, 2022. [Photo/Xinhua]
ECARX Holdings, Inc., a startup offering hardware and software solutions essential for the development of connected, automated and electrified vehicles, listed its shares on U.S. stock exchange Nasdaq on Wednesday through combining with special purpose acquisition company COVA Acquisition Corp.
The management and shareholders of ECARX Holdings attended a ceremony to ring the opening bell at Nasdaq on Wednesday morning.
In May 2022, ECARX Holdings and COVA announced the merger deal, which values ECARX Holdings at 3.82 billion U.S. dollars of pro forma equity value and was closed on Tuesday.
Registered in Cayman Island, ECARX Holdings started from China and has expanded its business into a few other countries.
ECARX Holdings mainly supplies automobile companies with infotainment head units (IHU), digital cockpits, vehicle chip-set solutions, a core operating system and integrated software stack.
Moreover, ECARX Holdings is developing a full-stack automotive computing platform.
Founded in 2017, ECARX Holdings has close to 2,000 employees and its technology has been integrated into more than 3.7 million cars worldwide, according to an earlier release by the company.
The founders of ECARX Holdings include Shen Ziyu, chairman and CEO of the company, and Li Shufu, founder and chairman of China-based automobile company Zhejiang Geely Holdings Group.
"The global automotive industry is experiencing the fastest transformation in its history and ECARX is uniquely positioned to continue capturing share within this rapidly growing market. The solid foundation we have built over the last five years strongly positions us for future growth, both expanding our relationship with existing partners and reaching new global brands as we expand internationally," said Shen.
ECARX Holdings would raise 368 million U.S. dollars from the transaction and existing shareholders of ECARX Holdings would retain 89 percent of pro forma equity in the combined company, according to an earlier presentation by ECARX Holdings.
Proceeds from the merger with COVA will be used to accelerate technology development and the roll-out of new products, support strategic acquisitions and investments, as well as create further pathways for global growth and profitability by the end of 2024, said ECARX Holdings.
ECARX Holdings recorded 303.1 million U.S. dollars of revenues in the first three quarters of 2022 with a net loss of 119.6 million U.S. dollars, according to a prospectus supplement by the company on Nov. 18.
