SAO PAULO (Reuters) – Shares in Eve, the urban mobility subsidiary of aircraft manufacturer Embraer, fell sharply on Tuesday, at the company’s debut on the New York Stock Exchange.
The shares were down about 17.9% to $9.30 around 1:00 pm ET, although the company’s share trades are illiquid.
Eve, which develops electric vertical take-off and landing aircraft (eVTOLs) for future city circulation, was listed in New York following the completion of a merger with blank check, or SPAC, company Zanite.
A SPAC (Special Purpose Acquisition Company) has no operations and raises money from investors through an exchange listing, after which it has a deadline to spend the proceeds on a merger with an operating company.
Eve raised US$377 million in the deal, which will be used “to accelerate the development, certification and commercialization of solutions”, according to Embraer. Eve has an order backlog of 1,825 vehicles from 19 customers.
The day before, analysts at Itaú BBA led by Thais Cascello wrote that the completion of the merger was an important milestone for Eve, but that the company was valued at a higher amount than its peers in the sector and the funds raised were lower than initially expected.
“This means that the company will have to raise capital again before the eVTOLs are ready for sale (which is expected in 2026). While we believe investors can be attracted as Eve reaches new milestones, reliance on further capital injection raises investment risk,” the analysts wrote in a report to clients.
Proceeds from the transaction came from Zanite, Embraer and an international consortium of investors.
Embraer shares fell 2.3% on the Brazilian stock market, the fourth consecutive low.
(By Andre Romani)
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