Explainer | China EV war: Top 5 electric vehicle fundraisers to watch out for in 2021
- WM Motor, Leapmotor and Aiways plan IPOs in Shanghai as they fight for market share in the world’s largest electric vehicle market
- Hong Kong-listed Geely and China Evergrande New Energy Vehicle Group plan A-share sales
China’s fundraising boom for electric cars looks set to continue through the Year of the Ox as the capital-intensive industry ploughs billions of dollars into new models, marketing and infrastructure across the world’s largest car market.
The single largest investment by the auto industry in a century is well under way, as electric vehicle - known as new-energy vehicles (NEV) in China - start-ups ramp up production, while traditional carmakers such as Geely and Great Wall Motors switch to making EVs from petroleum-fuelled internal combustion engines.
The fundraising boom via special purpose vehicles, better known as SPACs, for new entrants is gathering momentum, said stock analysts. Lucid Motors is nearing a deal to go public via a SPAC, according to Bloomberg. Some incumbent players are attempting their own capital raises or monetisation efforts by ring-fencing or spinning out EV assets.
Investors tend to see the new EV companies as having a greater growth potential but think the incumbents can lean on already meaningful earnings.
