A Chinese provider of hydrogen used in fuel cell vehicles is considering a Nasdaq debut early next year via a SPAC merger that would land it a $1 billion valuation after listing, TechCrunch reports.
If the deal with its undisclosed suitor goes through, Shenzhen State Fuel Cell Corporation will become the latest in a long line of electric vehicle companies to choose the short route to an IPO.
The deal comes at a time when companies that took the SPAC route are facing increasing scrutiny in the U.S., as many EV companies that went public in the last two years haven’t fared well, leading to the U.S. Securities and Exchange Commission (SEC) launching investigations into allegations of misleading shareholders.
Promising companies, including Nikola, Lordstown Motors and Faraday Future, have been forced to pare down projections and plans following allegations that they mislead investors with unrealistic projections.
The SEC proposed new guidelines to monitor these deals in March. Read more.
