Chinese automaker Chijet Motor Co has agreed to go public in the United States through a merger with a blank-check vehicle Deep Medicine Acquisition Corp in a deal valued at $2.55 billion, the companies said on Wednesday.
Chijet said it would use the proceeds of $127.8 million from the deal to increase production capacity, develop its electric vehicles and expand in Southeast Asia.
The deal is expected to close by the end of the fourth quarter, the companies said.
Last year, Chinese regulators clamped down on overseas stock listings, particularly after the New York debut of Didi Global. However, some smaller startups from the country are reviving U.S. listing plans by merging with special purpose acquisition companies (SPACs).
SPACs are firms with no business operations which merge with a private company to take it public.
After a bumper 2020, the frenzy around these companies has receded. Several SPAC mergers have been torpedoed by high investor withdrawals and uncertain market conditions this year.
Reuters