The FF founded by Jia Yueting went public today, and it is still unknown when he will return to China. On the eve of FF’s listing, Evergrande Motor, which holds 20% of its shares, made a fortune first, and its stock price soared by more than 20%.
Faraday Future (hereinafter referred to as FF) founded by Jia Yueting is about to go public.
According to public information, FF will be listed on the Nasdaq via SPAC on July 22. The combined company’s common stocks and warrants are expected to begin trading on the Nasdaq Stock Exchange around July 22, 2021, with the stock codes “FFIE” and “FFIE.WS” respectively.
It is worth noting that Evergrande Automobile holds 20% of FF shares. Tonight, we still don’t know how FF’s stock price will perform after its listing. However, with its investment in FF, Evergrande’s stock price rose by more than 20% this morning.
Why is FF so anxious to go public?
Regarding FF, many people still know it because of Jia Yueting. As a weapon for Jia Yueting to stand up, FF has been accepting doubts from the outside world since its establishment. The car has been built for many years, but only the sound of the sound has been heard, and the delivery of the vehicle has been continuously delayed.
However, it is such a company that enjoys a lot of dividends under the wave of new energy vehicles and has successively obtained many financings, including Evergrande. Moreover, there was also news that the Zhuhai State-owned Assets Supervision and Administration Commission coordinated Zhuhai’s state-owned enterprises Gree Group and Huafa Group to invest in FF.
However, relevant sources disclosed that the aforementioned state-owned companies only contacted FF and did not take any actual actions. At the same time, a document submitted by Faraday Future to the US Securities Regulatory Commission on July 15 shows that the cornerstone investor who originally planned to invest US$175 million will not take a stake in FF, and the investor is “a certain tier city.”
After a bumpy journey, the last turning point occurred in 2019. In October of that year, Jia Yueting filed for personal bankruptcy in the United States, established a creditor trust with his FF equity, and handed it over to the creditors to control and manage it. In other words, Jia Yueting exchanged all the debts owed by FF’s equity to repay, and now the creditors have become FF shareholders. Therefore, FF listing and financing is also a more urgent matter for creditors, otherwise Jia Yueting will never get the money owed to him.
“Hit” Sun Hongbin, Jia Yueting still did not “fudge” Xu Jiayin
At first, since Jia Yueting outgoing Letv after the person in charge, he went to the United States repairer, leaving music Watch a bunch of mess, “home next week,” the stem is has continued to this day. As Jia Yueting sent charcoal in the snow before going abroad, Sun Hongbin was very distressed, and the laughter at the cooperation table had already turned into tears of regret.
After becoming the actual controller Watch music, Sun Hongbin can be said to have been trying to deal with the music, as the mess and try to distance themselves from the relationship with the non-listed systems, re-adjust the personnel structure, original music as the high tube staff in many cases had to leave. Earlier, at the briefing meeting, Hongbin Sun said that sometimes people have to dare to change the sun and the moon to a new sky, and sometimes they have to be willing to bet.
I don’t know if it is Jia Yueting’s luck or his ability to “paint big pie”. After Sun Hongbin, another real estate developer Xu Jiayin’s shot gave Jia Yueting and his Faraday future a chance to breathe. The difference is that this time I benefited from another dream of Jia Yueting—Faraday Future.
At the end of June 2018, Evergrande Health issued an announcement stating that Evergrande Group acquired 100% of the shares of Hong Kong Shiying Company for HK$6.746 billion, with a one-off payment in cash on or before July 3, 2018. At the same time, Evergrande also indirectly obtained 45% of Smart King’s equity and became the company’s largest shareholder. This also means Hengda officially entered Mei country’s new energy auto companies Faraday Future.
In fact, the collaboration between Evergrande and Jia Yueting at that time was more about getting what you need. One needed money, and the other needed an opportunity for transformation. However, unlike Sun Hongbin’s ending, Xu Jiayin did not suffer too much. The two parties eventually fell apart due to issues such as management rights, property rights, and equity. After the cooperation ended, FF’s control in China has been fully in the hands of Evergrande.
According to the agreement between the two parties, Evergrande’s initial investment of US$800 million will be converted into 32% of FF preferred equity and 100% of FF Hong Kong will be held. FF Hong Kong holds all FF’s assets in China, including FF China and Evergrande Faraday. Related companies. Jia Yueting can repurchase the 32% equity of FF held by Evergrande within 5 years. The exercise price in the first year is 600 million U.S. dollars, and the exercise price in the second to fifth years is 700 million U.S. dollars, 800 million U.S. dollars and 920 million U.S. dollars. US dollars, 1.05 billion US dollars.
The unpleasant experience more than two years ago also made Evergrande a lot today.
It is reported that the current Evergrande Automobile holds 20% of FF shares. On the eve of listing, Evergrande Automobile made a fortune. After the Hong Kong stock market opened today, Evergrande’s share price rose by more than 20%. As of the Hong Kong stocks’ lunch break, Evergrande’s share price was at 16.66 Hong Kong dollars, a 26.21% increase. The current total market value is approximately 162.751 billion Hong Kong dollars.
Listing is not everything, FF’s greater challenge is yet to come
It is understood that through IPO financing, FF was able to obtain 1 billion US dollars this time to ease current difficulties and mass production delivery.
According to public financial information, FF’s net losses in the first quarter of 2019, 2020, and 2021 were US$142 million, US$147 million, and US$75.525 million, respectively, and they have been at a loss. Moreover, after the listing, there will be more investment in marketing, R&D, testing, and factories. US$1 billion can satisfy the immediate thirst, but it is still unknown whether it can go on smoothly in the future.
Among them, it also includes the stock price trend after listing. Even though the development of global new energy companies is pretty good, FF can’t use conventional thinking to assume simulation after all. It has not officially delivered a car. The mass production mentioned before has repeatedly skipped votes. This time, FF gave another time point. If all goes well, it is expected that FF91 can be delivered within 12 months after the listing.
It is worth noting that FF91 has now begun to accept reservations, with a deposit of 50,000 yuan, and the final price is reported to be about 2 million yuan.
It remains to be seen whether Jia Yueting can stand up this time. The successful listing of FF may change the minds of those who once doubted it. However, it is still unknown whether FF will win the market after the listing, and the reservation and delivery of FF91 are also unknown.
Last month, on Father’s Day, Jia Yueting wrote, “FF is like my child. I will always be proud of it. FF partners and I will continue to invest our full strength and lead the auto industry to the direction of Internet smart electric change”. Smart Watch believes that if Jia Yueting really treats FF as his own child, he hopes that he will not turn it into a tool to harm investors and users like LeEco.
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