ECARX Holdings Inc. Announces Pricing of Offering of 25,000,000 Class A Ordinary Shares

Rhea-AI Summary

ECARX Holdings (Nasdaq: ECX) has announced the pricing of its underwritten public offering of 25,000,000 Class A ordinary shares at US$1.80 per share. The global mobility tech provider has granted underwriters a 30-day option to purchase up to an additional 3,750,000 shares.

The offering is being led by Deutsche Bank AG, Hong Kong Branch and China International Capital Hong Kong Securities as representatives of the underwriters. The shares are being offered under ECARX's shelf registration statement on Form F-3, which became effective on December 27, 2024.

The company plans to utilize the net proceeds for:

• Research and development initiatives
• Establishment of overseas supply chain networks
• General corporate purposes

Positive

• Company secures additional funding through public offering
• Strategic investment in R&D and supply chain expansion

Negative

• Potential dilution of existing shareholders' value
• Share offering priced at relatively low $1.80 per share

Insights

Financial Analyst

ECARX's announced offering of 25 million Class A ordinary shares at $1.80 per share represents a significant capital raise of approximately $45 million, with potential to reach $51.75 million if underwriters exercise their additional purchase option. The pricing at $1.80 represents a substantial 20.35% discount to the current $2.26 market price, which signals challenging market conditions for the company.

This offering will cause meaningful dilution for existing shareholders. With a current market cap of approximately $804.6 million, this offering represents roughly 5.6% dilution before considering the potential overallotment. The steep discount magnifies the negative impact, as new capital is being raised at a significant valuation reduction.

The company's planned use of proceeds for R&D and establishing overseas supply chains suggests ECARX is prioritizing global expansion and technology development. However, the inclusion of "general corporate purposes" raises questions about potential cash flow challenges. This financing approach, rather than using debt or strategic partnerships, indicates potential limitations in accessing alternative capital sources with more favorable terms.

The involvement of major underwriters like Deutsche Bank and China International Capital lends credibility to the offering, but the steep discount suggests institutional demand at prices closer to the current market value. This capital raise points to near-term financial challenges while providing resources for longer-term strategic initiatives.

Tech Industry Specialist

ECARX's $45 million capital raise (potentially $51.75 million with overallotment) signals strategic prioritization of R&D and global supply chain development in the highly competitive mobility tech sector. As automotive technologies rapidly evolve toward software-defined vehicles, this investment likely targets accelerating development of the company's digital cockpit, advanced driver-assistance systems, and connected services offerings.

The focus on establishing overseas supply chain networks is particularly significant given ongoing global semiconductor constraints and geopolitical tensions affecting technology component sourcing. Building resilient, diversified supply chains has become essential for mobility tech providers to ensure production continuity and competitive positioning.

However, the 20.35% discount to current share price suggests market skepticism about ECARX's competitive position against both established automotive suppliers and emerging mobility tech startups. The industry faces substantial challenges including extended automotive development cycles, high customer concentration risk, and increasing competition from tech giants entering the mobility space.

The capital infusion provides ECARX breathing room to advance its technological roadmap, but the dilutive financing approach indicates the company likely lacks the strong unit economics or revenue growth trajectory that would support more favorable financing terms. While the capital addresses immediate development needs, ECARX will need to demonstrate accelerated commercial traction to justify its valuation and support future financing rounds under better terms.

SHANGHAI, March 28, 2025 (GLOBE NEWSWIRE) -- ECARX Holdings Inc. (Nasdaq: ECX) (“ECARX” or the “Company”), a global mobility tech provider, announced the pricing of the underwritten public offering (the “Offering”) of 25,000,000 Class A ordinary shares of the Company (the “Ordinary Shares”), at a public offering price of US$1.80 per share. The Company has granted the underwriters in the Offering a 30-day option to purchase up to an additional 3,750,000 Ordinary Shares.

Deutsche Bank AG, Hong Kong Branch and China International Capital Corporation Hong Kong Securities Limited are acting as representatives of the underwriters in the Offering.

The Ordinary Shares are offered under the Company’s shelf registration statement on Form F-3 which was declared effective by the Securities and Exchange Commission (the “SEC”) on December 27, 2024. The Offering is being made only by means of a prospectus supplement and an accompanying prospectus included in the Form F-3. The Form F-3 and the prospectus supplement are available on the SEC website at: http://www.sec.gov. Before you invest, you should read the shelf registration statement, prospectus supplement (including the accompanying base prospectus) and the documents incorporated by reference therein. Copies of the prospectus supplement and the accompanying prospectus may be obtained from (1) Deutsche Bank AG, Hong Kong Branch, Level 60, International Commerce Centre, 1 Austin Road West, Kowloon, Hong Kong; and (2) China International Capital Corporation Hong Kong Securities Limited, 29th Floor, One International Finance Centre, 1 Harbour View Street, Central, Hong Kong.

The Company plans to use the net proceeds from the Offering primarily for (i) research and development initiatives, (ii) establishment of overseas supply chain networks, and (iii) general corporate purposes.

This press release shall not constitute an offer to sell or a solicitation of an offer to purchase any securities, nor shall there be a sale of the securities in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful.

This press release contains information about the pending offering of the Ordinary Shares, and there can be no assurance that such offering will be completed.

About ECARX Holdings Inc.

ECARX (Nasdaq: ECX) is a global automotive technology provider with capabilities to deliver turnkey solutions for next-generation smart vehicles, from the system on a chip (SoC), to central computing platforms, and software. As automakers develop new electric vehicle architectures from the ground up, ECARX is developing full-stack solutions to enhance the user experience, while reducing complexity and cost.

Founded in 2017 and listed on the Nasdaq in 2022, ECARX now has over 1,900 employees based in 12 major locations in China, UK, USA, Sweden and Germany. The co-founders are two automotive entrepreneurs, Chairman and CEO Ziyu Shen, and Eric Li (Li Shufu), who is also the founder and chairman of Zhejiang Geely Holding Group — with ownership interests in global brands including Lotus, Lynk & Co, Geely Galaxy, Polestar, smart, and Volvo Cars. ECARX also works with other well-known automakers, including Volkswagen Group, FAW and Dongfeng Peugeot-Citroën. To date, ECARX products can be found in over 8.1 million vehicles worldwide.

Safe Harbor Statement
This release contains statements that are forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. These statements are based on management’s beliefs and expectations as well as on assumptions made by and data currently available to management, appear in a number of places throughout this document and include statements regarding, amongst other things, results of operations, financial condition, liquidity, prospects, growth, strategies, and the industry in which we operate. The use of words “expects,” “intends,” “anticipates,” “estimates,” “predicts,” “believes,” “should,” “potential,” “may,” “preliminary,” “forecast,” “objective,” “plan,” or “target,” and other similar expressions are intended to identify forward-looking statements. These forward-looking statements are not guarantees of future performance and are subject to a number of risks and uncertainties that could cause actual results to differ materially, including, but not limited to statements regarding our intentions, beliefs, or current expectations concerning, among other things, results of operations, financial condition, liquidity, prospects, growth, strategies, future market conditions or economic performance and developments in the capital and credit markets and expected future financial performance, and the markets in which we operate.

For a discussion of these and other risks and uncertainties that could cause actual results to differ materially from those expressed in any forward-looking statement, see ECARX’s filings with the U.S. Securities and Exchange Commission. ECARX undertakes no obligation to update or revise forward-looking statements to reflect subsequent events or circumstances, except as required by applicable law.

Investor Contacts:
Rene Du
ir@ecarxgroup.com

Media Contacts:
ecarx@christensencomms.com

FAQ

What is the price per share for ECARX's (ECX) public offering in March 2025?

ECARX (ECX) priced its public offering at US$1.80 per Class A ordinary share.

How many shares is ECARX (ECX) offering in its March 2025 public offering?

ECARX is offering 25,000,000 Class A ordinary shares, with an option for underwriters to purchase an additional 3,750,000 shares.

What will ECARX (ECX) use the proceeds from its 2025 public offering for?

ECARX will use the proceeds for R&D initiatives, establishing overseas supply chain networks, and general corporate purposes.

Who are the underwriters for ECARX's (ECX) March 2025 public offering?

Deutsche Bank AG, Hong Kong Branch and China International Capital Hong Kong Securities are the representatives of the underwriters.