(Bloomberg) -- Ecarx Holdings Inc., the car technology company backed by billionaire Li Shufu, is going public through a merger with blank-check company Cova Acquisition Corp. in what would be the largest Chinese listing in the US since Didi Global Inc., according to people with knowledge of the matter.

The combined company will be valued at about $3.8 billion in the deal, said the people, asking not to be identified as the information is private. The transaction includes a $45 million investment from Li’s automobile giant Zhejiang Geely Holding Group Co., Luminar Technologies Inc. and Lotus Technology. Geely is an existing investor in Ecarx.

The deal could be announced as early as Thursday, the people said. Representatives for Ecarx and Cova Acquisition declined to comment.

Read more: Chinese Tycoon Li Shufu in Fundraising Push to Boost Auto Empire

Ecarx would be the largest Chinese company to list in the US following Didi’s spectacular failure. The ride-hailing giant is set to delist from the New York Stock Exchange after proceeding with its IPO last June over Chinese regulators’ objections and becoming a victim of the country’s cybersecurity crackdown. Didi has lost about 90% of its market value since its debut.

Ecarx, founded in 2017 by Geely’s Li and Ziyu Shen, develops software and hardware such as digital cockpit and infotainment systems for cars. It serves both combustion-powered vehicles and automated and electric cars. Its clients include 12 car brands such as Geely, Lotus, Mercedes-Benz Group AG and smart. 

Cova Acquisition raised $300 million in its 2021 IPO to find an acquisition target in the technology industry in Southeast Asia or the US, according to a filing to the Securities and Exchange Commission. The SPAC is led by Jun Hong Heng, founder of San Francisco-based Crescent Cove Advisors, which backs high-growth technology, media and telecommunications ventures in the US and Southeast Asia.

Crescent Cove was an early investor in Luminar, a driverless-car startup founded by entrepreneur Austin Russell. Luminar went public through a SPAC deal in 2020.

 

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