28 Dec 21

Embraer subsidiary readies IPO, flying vehicles round corner

Eve, the urban mobility division of Brazilian aviation and aerospace company Embraer (BVMF: EMBR3), is planning an IPO on the NYSE through a SPAC merger with US-based Zanite Acquisition Corp. (Nasdaq: ZNTE) aimed at manufacturing flying urban mobility passenger vehicles.

The IPO is expected in the second semester of 2022, and Embraer is seen retaining 82% ownership of Eve. Embraer stock price rose 22% in one week, reaching 24.44 BRL (US$4.33) on 27 December from 19.91 BRL on 20 December. 

The company, to be known as “New Eve”, will have an equity value of some US$2.9 billion. This includes US$237mn cash injection from Zanite and $305mn in PIPE (private investment in public equity), according to an Embraer release.

For now, Eve’s prototype is a 4-passenger electric-powered VTOL vehicle with 10 motors (8 vertical and 2 horizontal propulsion) with a range of 100km. To be ready for distribution in 2026, plans call for eventually having autonomous units.

A total of 1,735 orders from 17 clients summing up to US$5.2bn has been reported, the latest being 100 units ordered by multinational aviation solutions firm Bristow Group last Thursday (23 December).

Authored by: Daniel Bland