FFA leads W Motors funding

Company aims to raise $6 million in investments

W Motors, a Lebanese developer of luxury sports cars, has mandated FFA Private Bank’s Investment Banking Division as advisors for financing the company’s growth. The company is seeking to raise $6 million from new investors.

The cash injection will be structured as a combination of a capital increase and a secured loan with priority return, in equal amounts ($3 million each). Each investor will participate in both the shares and secured debt on a 50-50 basis. Minimum investment is $100,000.

“We always target attractive investment opportunities with unique offering to the markets and W Motors is an important deal since it’s a new concept in the region,” said Julien Khabbaz, Head of Investment Banking at FFA Private Bank.

“The company is expected to attract different kinds of investors looking for high returns on their investment,” said Khabbaz. Internal Rate of Return (IRR) is projected at 31 percent for the base case scenario given an exit in 5 years and could reach up to 43 percent in a higher case scenario. «It’s a private placement where the bank will be acting only as an advisor,» said Khabbaz. "We will pool investors and participate in the board of the company in order to represent them and guarantee that funding is used in the right way," he explained.

W Motors, headquartered in Dubai, produces the Lykan Hypersport luxury sports car line. Entrepreneur Ralph Debbas founded the company and partnered with international suppliers in the automotive industry and design sector such as Magna Steyr and RUF Automobile. Only seven cars will be produced per model and will be sold at $3.5 million.