Image Source : Cheche Technology

　　BEIJING, February 1 (TMTPOST) —— Cheche Technology Inc., a Chinese auto insurance technology platform, is going to be listed on the Nasdaq through a merger with special purpose acquisition company (SPAC) Prime Impact Acquisition I in a deal with an enterprise value of $841 million.

　　Cheche would be listed on the Nasdaq under the new ticker symbol CCG when the transaction is finished in the third quarter of 2023. After the listing, Cheche Technology will continue to be led by Lei Zhang, the founder and CEO of the company. Cheche Technology's shareholders will retain most of the outstanding shares of the new company and appoint a majority of directors.

　　According to the announcement, Cheche Technology's pre-investment equity value is $760 million. Assuming no further redemption by SPAC's Prime Impact shareholders, the new company will be valued at approximately $841 million for $10 per share after the proposed transaction. The transaction is expected to generate approximately gross proceeds of $68 million for Cheche Technology. Additional financing is possible.

　　The proceeds from the listing are expected to be used to enter new markets, invest in growth across existing markets, and accelerate the company's tech development.

　　It is quite common for companies to choose SPAC instead of the traditional IPO in the US stock market. SPAC listing refers to the acquisition of an unlisted target company in the form of merger, share purchase, share exchange, asset acquisition, and reorganization within a specified time (generally 2 years) after a shell company with no actual business operation raise funds for the initial public offering so that the company (also known as the successor company) could be indirectly qualified for the listing.

　　Founded in 2014, China-based Cheche focuses on property and casualty insurance, covering over 4,000 vehicle makes with around 100 insurance carriers. Through mobile technology, big data, cloud computing, and transaction service network, it has created an insurance digital transaction service platform that provides auto insurance intelligent recommendations for private car owners.