Yahoo Finance Russian tycoon behind UK electric vehicle firm Arrival nets nearly $10bn
The Russian founder of British electric vehicle start-up Arrival has seen his wealth soar by almost $10bn (£7.2bn) after his firm went public in the largest ever UK company listing in history.
Arrival, which is based in Banbury in Oxfordshire, listed on the Nasdaq on Thursday through a SPAC merger with CIIC Merger Corp that valued the business at over $13bn.
The deal netted 43-year-old Denis Sverdlov, Arrival's chief executive, $9.8bn. Mr Sverdlov is a telecoms tycoon and a former Russian minister.
Documents relating to the listing, which were made public on Thursday, showed that Mr Sverdlov will own 76pc of the stock in the new public company.
It also means Arrival has had the largest listing by a UK company despite the fact that it has technically yet to sell a vehicle.
Arrival’s new valuation represents a significant increase from last year when it was pegged at around €3bn (£2.58bn) in January. It has raised around $660m through its merger with CIIG. The company claims its first vehicles are due to be made in the fourth quarter of this year.
Mr Sverdlov said he believes “all vehicles will soon be electric” as it is better for the planet, people, and businesses.
“Going public is an opportunity that will allow us to continue to scale globally, bringing these products to more and more cities and people,” he said.
“We also understand that this comes with responsibility. Arrival has a remarkable company culture, which attracts great talent and enables us to be truly creative.”
Peter Cuneo, a former head of personal care brand Remington and comic book giant Marvel, created the special purpose acquisition company (SPAC). SPACs have become an increasingly popular method of going public with investors looking to pour money into exciting start-ups in the global low-interest environment.
The company aims to build low-cost electric vans and commercial vehicles like buses. It differs to that of many other EV firms in that it aims to construct its vehicles in so-called micro-factories.
It claims it can gain an advantage over the likes of Tesla by being able to constantly change how it builds its vehicles in order to produce them in the most-efficient way possible.
Arrival said there has been “strong interest” in its products with a recent commitment to purchase up to 10,000 electric vehicles from United Parcel Service (UPS).
