The initial public offering (IPO) of Eve, a subsidiary of Embraer producer of electric aircraft also known as flying cars, should take place in the middle of the second quarter of 2022, according to initial forecasts by the company.
The Brazilian aircraft manufacturer announced this Tuesday morning (21) the merger with the North American Zanite Acquisition Corp, with the objective of listing the shares of the new company on the New York Stock Exchange (Nyse).
Zanite consists of an investment vehicle known as “Specific Purpose Acquisition” (SPAC), a format that has gained popularity in the US market in recent times, in which investors first raise funds, only then go after projects to allocate. the capital.
According to Francisco Gomes, executive president of Embraer, the fact that the executives ahead of Zanite are shareholders of Directional Aviation Capital, one of the main executive jet operators in scale, played a relevant role in the decision to merge Eve’s operations with SPAC. global.
“These are people with very great knowledge of the aviation market, and great partners to work with Embraer”, says Gomes.
He adds that the option to go public on the US Stock Exchange, as well as the choice to merge with a SPAC, was a natural path to be followed to facilitate and speed up the process of raising investors with investors.
The President of Embraer says that he still has no plans at this time to make a double listing of shares, with the launch of shares in the Brazilian market, along the lines of the offer by Nubank at the beginning of the month.
The aircraft manufacturer’s shares operated at a strong high this Tuesday morning on the Brazilian Stock Exchange, the B3 — around 12:00, the shares advanced 13.96%, quoted at R$ 22.69.
The transaction announced on Tuesday values ​​Eve at US$2.9 billion (R$16.544 billion) and will include a first step in the merger with Zanite.
Thereafter, Eve will receive additional investment from a group that includes Embraer, Zanite, financial investors and strategic partners such as Azorra Aviation, BAE Systems, Republic Airways, Rolls-Royce, SkyWest Melbourne and Bradesco BBI.
After the two investments, Eve, which will be listed on the NYSE under the code EVEX, will have a cash position of $512 million (BRL 2.921 billion), which will be used to develop its electric air taxi.
The company has already received orders corresponding to approximately $5 billion (BRL 28.525 billion) of 1,735 aircraft ordered by 17 customers including leasing companies, helicopter operators and transport sharing companies.
Embraer will retain an approximately 82% stake in Eve after the additional investment. According to Gomes, it is estimated that by 2025 the electric aircraft company will have obtained all the necessary certifications to start its operations properly with the first deliveries in mid-2026.
Embraer’s CEO projects $4.5 billion (BRL 25.672 billion) in Eve revenue in 2030, and a 15% share of the global urban air mobility market.
Embraer will provide infrastructure for Eve, including the allocation of engineers as needed on projects, test sites and flight simulators.
(With Reuters)
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