Lilium IPO brings in less money than hoped for

The air cab start-up will probably raise around 300 million US dollars less than planned. However, this is not unusual for IPOs via Spac.
News by Lars-Thorben Niggehoff Lars-Thorben Niggehoff · Stuttgart, 13. September 2021

The air cab start-up will probably raise around 300 million US dollars less than planned. However, this is not unusual for IPOs via Spac.

The Munich-based air cab company Lilium is expecting less new capital from its planned IPO than it had hoped. As the Handelsblatt reports, the start-up will probably only receive 584 million US dollars instead of the targeted 830 million US dollars. This corresponds to a valuation of around three billion US dollars for the entire company.

Lilium is planning to launch on the US technology exchange Nasdaq in the coming days. To this end, the company is merging with Spac Quell, which was founded by former General Motors manager Barry Engle. The problem: the majority of Quell investors preferred to return their shares in Spac rather than exchange them for Lilium shares. This also explains the lower capital injection. However, this is not unusual for Spacs: 70 to 90 percent of investors currently exit once the takeover candidate has been determined, Lilium is even lower with a rate of 65 percent.

However, according to CEO Daniel Wiegand, this should not be a setback for the company. The commercial launch is still planned for 2024. Some of Lilium's competitors have also already dared to go public via Spac or are planning to do so. Joby is already listed in the USA and Archer intends to follow suit. Volocopter is also considering a move in this direction.


Like it? Please spread the word:


Newsletter

Startups, stories and stats from the German startup ecosystem straight to your inbox. Subscribe with 2 clicks. Noice.

LinkedIn Connect

FYI: English edition available

Hello my friend, have you been stranded on the German edition of Startbase? At least your browser tells us, that you do not speak German - so maybe you would like to switch to the English edition instead?

Go to English edition

FYI: Deutsche Edition verfügbar

Hallo mein Freund, du befindest dich auf der Englischen Edition der Startbase und laut deinem Browser sprichst du eigentlich auch Deutsch. Magst du die Sprache wechseln?

Deutsche Edition öffnen

Similar posts