Arrival, which is pioneering a new way of manufacturing commercial electric vehicles, and which is building a micro factory at Bicester, is to float on the New York-based NASDAQ stock exchange.
The float will see the London-headquartered tech company, which also has a major research based in Banbury, valued at more than $5.4 billion and is expected to provide around $660 million in cash for the company.
The fundraising will be used to support the company’s growth plans as it ramps up vehicle production, including the launch of Arrival’s first microfactories, in Bicester and South Carolina, USA.
Arrival burst onto the automotive scene in 2015 and has developed a new method of designing and producing zero-emission vehicles in low cost microfactories using its proprietary hardware, software and robotics technologies.
Last month the company revealed it had raised $118 million from funds managed by BlackRock. And that fund-raise had followed another earlier in the year where it secured €100 million (£75 million) from Hyundai Motor Company and Kia Motors Corporation.
The tech unicorn says it has signed contracts with total order value up to US $1.2 billion and its first products are planned for production in the first quarter of next year.
Arrival is challenging the 100 year old automotive production process, by producing its electric vehicles in lower cost, low footprint microfactories. Its operations use the company’s in-house proprietary technologies and advanced cell-based assembly method to bring down the cost of electric vehicles and accelerate mass adoption globally.
Arrival’s initial focus is on the commercial vehicle market, which is undergoing a major shift towards electrification in line with global public policy.
The company says its microfactories can be deployed anywhere in the world within six months, using existing warehouses close to areas of demand. These microfactories will be designed to produce any vehicle from Arrival’s portfolio customized for the cities and regions they serve.
Arrival says its vertical integration and new method of production, using small scalable factories rather than giant capital-intensive traditional factories, create strong unit economics for the whole Arrival product portfolio, which Arrival hopes will achieve profitability by 2023.
Denis Sverdlov, Founder and CEO of Arrival, said: “With Arrival’s products our clients are not forced to compromise between being green and being cost efficient. Our focus on the whole EV ecosystem, new methods of design and production and our enabling technologies are the key to driving down the cost of EVs and accelerating the transition to zero-emission transportation globally.”
Arrival is to list on Nasdaq through a merger with CIIG Merger Corp. Peter Cuneo, Chairman and CEO of CIIG, said: “Arrival’s bold, game-changing approach to the production of electric vehicles made the company the clear winner in our search for a partner.
“Operating in stealth mode for five years, Denis and his visionary team have rewritten the rules of the game for the auto industry. Arrival’s development of exceptional products using its pioneering technology and software alongside its groundbreaking new method of production can create an incredibly low TCO [total cost of ownership] for customers which we believe stands them apart from everyone else in the electric vehicle industry. We look excitedly to the future and to our partnership with Arrival’s talented leadership team.”
In addition, alongside an investment in Arrival in early 2020, UPS
, the global logistics company, announced a commitment to purchase 10,000 electric vans, and has the additional option to order more.
Successful technology entrepreneur Denis Sverdlov will remain as Arrival’s CEO, with ex-Cruise Head of Strategy, Avinash Rugoobur, continuing as Arrival’s President. Mike Ableson, former VP of Global Strategy at GM, is CEO of Arrival Automotive overseeing global production.
London-based inventor and IT professional Denis Sverdlov is a serial entrepreneur having built and exited multiple companies, Denis’ most recent success was with Yota – the telecoms company that pioneered the biggest 4G network in Russia. Having built the company to 1,200 employees Denis sold Yota in 2012 for $1.5 billion. Post-acquisition Denis set up the Kinetik trust to invest in a range of promising technologies and bring them to market. In 2015 he founded Arriva and is also the founder of Roborace – the world’s first driverless electric racing platform.