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SHANGHAI - ECARX Holdings Inc. (NASDAQ:ECX), a global provider of automotive technology with a current market capitalization of $775 million, has launched a public offering of 25 million Class A ordinary shares, with an additional option for underwriters to acquire up to 3.75 million more shares. The announcement comes as the stock has experienced significant volatility, with InvestingPro data showing a 26.7% gain over the past six months despite a recent 10.7% decline in the past week. The offering is part of the company’s efforts to raise capital for research and development, expansion of overseas supply chains, and general corporate purposes.
The shares are being offered pursuant to a shelf registration statement, which was declared effective by the U.S. Securities and Exchange Commission on December 27, 2024. Deutsche Bank AG, Hong Kong Branch, and China International Capital Corporation Hong Kong Securities Limited are serving as representatives of the underwriters for the offering.
Investors interested in the offering can access the preliminary prospectus supplement and accompanying prospectus on the SEC’s website or obtain copies from the offices of Deutsche Bank AG and China International Capital Corporation in Hong Kong.
ECARX specializes in delivering comprehensive solutions for next-generation smart vehicles, including system on a chip (SoC), central computing platforms, and software. The company aims to enhance user experience in electric vehicle architectures while streamlining complexity and costs.
Founded in 2017 and going public in 2022, ECARX has grown to employ over 1,900 people across key global markets. The company has shown promising revenue growth of 18.3% in the last twelve months, reaching $762 million, though InvestingPro analysis indicates it operates with moderate debt levels and faces some challenges with short-term liquidity. The company’s co-founders are automotive industry entrepreneurs Ziyu Shen and Eric Li, the latter also known for founding Zhejiang Geely Holding Group, which holds interests in several global automotive brands.
ECARX’s technology is currently integrated into over 8.1 million vehicles worldwide, with partnerships including major automakers such as Volkswagen Group, FAW, and Dongfeng Peugeot-Citroën.
The completion of the offering is subject to market conditions, and there can be no assurance as to when or if the offering will be finalized or its exact size and terms. According to InvestingPro, analysts maintain optimistic projections for ECARX’s future performance, with expectations of profitability in the coming year. For investors seeking deeper insights, InvestingPro offers 10 additional exclusive tips and a comprehensive Pro Research Report, providing detailed analysis of ECARX’s market position and growth potential.
This news is based on a press release statement and contains forward-looking statements subject to risks and uncertainties that could cause actual results to differ materially from those projected. ECARX has stated it will not update forward-looking statements unless required by law.
In other recent news, Ecarx Holdings Inc reported a 4% year-over-year increase in revenue for the fourth quarter of 2024, reaching RMB 1.9 billion. The company achieved EBITDA breakeven, a significant milestone, and saw a full-year revenue increase of 18% to RMB 5.6 billion. Ecarx plans to continue its strategic focus on balancing revenue growth with profitability, aiming for positive EBITDA for the full year 2025. Additionally, Ecarx secured a new project with Volkswagen Group, expanding its global customer base to 18 automakers across 28 brands. This expansion demonstrates the company’s commitment to diversifying its revenue streams and reducing dependency on the Geely ecosystem. The company also highlighted its investment in ADAS (Advanced Driver Assistance Systems) and AI technologies as a priority for future growth. Analyst discussions emphasized the importance of Ecarx’s breakeven achievement and its strategic roadmap for global expansion.
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