Faraday plans to be listed on NASDAQ in the future, with a valuation of $3.4 billion


In the early morning of January 29, Beijing time, Faraday submitted IPO (initial public offering) listing application documents to the securities and Exchange Commission (SEC) in the future, and will be listed through the merger with property solutions acquisition Corp, a special purpose acquisition company (SPAC).
The combined entity is valued at $3.4 billion, which means that Faraday will become the latest electric car company to join the so-called “blank check deal” boom in the future.
With the explosive growth of global electric vehicle business led by Tesla and other companies, a large number of electric vehicle manufacturers are scrambling to use the hot IPO market to raise funds. Last year, other well-known players in the industry, such as Fisker and Nikola, have also been listed through mergers with special purpose acquisition companies.
Faraday future and property solutions said on Thursday that the deal, backed by $775 million in private investment, is expected to generate $1 billion in gross revenue for Faraday in the future.
Geely holdings, a Chinese auto maker, will become an anchor investor in the private offering, a source familiar with the matter said on Wednesday. Faraday plans to build a new base in China in the future, with Geely Holding providing OEM services, sources said.
Compared with traditional IPO, merger and listing with Special Purpose Acquisition (SPM) has become a very popular way for companies seeking to be listed under the condition of less regulatory review and more definite valuation.
Spacs, such as property solutions, are shell companies that raise money through IPOs to get another company listed within two years. Last July, property solutions raised about $200 million in its IPO.
Faraday future was founded in 2014 by former CEO Jia Yueting, who filed for bankruptcy in October 2019 and plans to hand over his shares to repay about $2 billion of personal debt. Jia is currently the company’s chief product and ecosystem officer.
The two companies said the combined company would be listed on NASDAQ under the stock code ffie.