ECARX sets public offering at $1.80 per share

SHANGHAI - ECARX Holdings Inc. (NASDAQ: ECX), a global mobility tech company with a market capitalization of $781 million, announced the pricing of its public offering of 25 million Class A ordinary shares at $1.80 each. The offering comes as the stock has experienced a 15% decline over the past week, though InvestingPro analysis suggests the stock is currently trading near its Fair Value. The offering includes an option for underwriters to purchase an additional 3.75 million shares within 30 days.

Deutsche Bank AG, Hong Kong Branch, and China International Capital Corporation Hong Kong Securities Limited are leading the underwriting for the offering. The shares are available under a shelf registration statement, effective as of December 27, 2024, by the Securities and Exchange Commission (SEC). Interested parties can access the prospectus supplement and accompanying prospectus through the SEC’s website.

The proceeds from the offering are earmarked for research and development, establishing overseas supply chain networks, and general corporate purposes. The completion of the offering is not guaranteed and is subject to market and other conditions.

Founded in 2017, ECARX specializes in automotive technology, developing full-stack solutions for smart vehicles, including system on a chip (SoC), central computing platforms, and software. The company, which went public in 2022, employs over 1,900 people across major locations in China, the UK, the USA, Sweden, and Germany. ECARX’s co-founders, Chairman and CEO Ziyu Shen and Eric Li, also have ties to Zhejiang Geely Holding Group, which has interests in several global automotive brands.

ECARX’s technology is currently used in over 8.1 million vehicles worldwide, with partnerships including Volkswagen Group, FAW, and Dongfeng Peugeot-Citroën.

This announcement is based on a press release statement and does not constitute an offer to sell or a solicitation to buy any securities. The offering is only made by means of a prospectus, and sales will only occur where lawful. Forward-looking statements in the release are subject to risks and uncertainties that could cause actual results to differ materially from those projected.

In other recent news, Ecarx Holdings Inc. reported a 4% year-over-year increase in revenue for the fourth quarter of 2024, totaling RMB 1.9 billion, and achieved EBITDA breakeven, marking a significant milestone for the company. For the full year, Ecarx’s revenue rose by 18% to RMB 5.6 billion. The company has initiated a public offering of 25 million Class A ordinary shares, with underwriters having the option to purchase an additional 3.75 million shares. The proceeds from this offering will primarily support research and development, expansion of overseas supply chains, and general corporate purposes.

Deutsche Bank AG and China International Capital Corporation are leading the underwriting efforts. Additionally, Ecarx has made strides in innovation, as highlighted by a new project with Volkswagen Group, expanding its customer base to include 18 automakers across 28 brands. The company’s focus on financial health is underscored by its strategic aim to achieve positive EBITDA for the full year 2025. Ecarx’s recent achievements also include securing a new project with Volkswagen and expanding its product offerings in collaboration with existing partners. These developments reflect Ecarx’s commitment to enhancing its position within the global automotive technology sector.

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