Beijing (ZXZC)- Ch-Auto Technology Corporation Ltd., the Chinese holding company of Qiantu Motor announced its pursuit of a SPAC listing on the Nasdaq Stock Market.

K50; photo credit: Qiantu Motor

Ch-Auto has inked an agreement to merge with a blank-check company, Mountain Crest Acquisition Corp. for the IPO. Per the plan, the regroup and merger will be completed in the fourth quarter of 2022, forming a new holding entity named CH AUTO Inc. 

Upon completion, the initial equity value will be approximately $1.25 billion. The founder and CEO of Ch-Auto, Lu Qun, will continue leading the merged CH AUTO Inc. as CEO.

In addition, on May 3rd, Qiantu Motor introduced its following operation plans through an online conference. The automaker will inaugurate a large-scale “private customization” manufacturing pattern based on new-generation non-steel materials. 

Ch-Auto was established in July 2012, and it founded the brand Qiantu Motor in 2015. In the same year, the company started trading in China’s National Equities Exchange and Quotations (NEEQ). However, the company reported undesirable financial performance in 2016, 2017, and 2018, with a net loss of RMB98 million ($14.82 million), RMB226 million ($34.18 million), and RMB606 million ($91.66 million), respectively. 

Notably, Ch-Auto Technology Corporation Ltd. holds 20% stake in Beijing Binli Automobile Technology Development Co., Ltd. The latter is 80% owned by Beijing BeyonCa Information Technology Co. Ltd., an automotive startup founded by Soh Weiming, the former Volkswagen China executive.