Home 2021 EVgo IPO is Go

California-based EVgo is set to join the parade of companies jumping on public equity markets following a transaction announced Friday to raise $575 million to accelerate the build-out of electric charging stations in the US.

The transaction with Climate Real Impact Solutions will provide capital to EVgo to build thousands of new fueling stations as major automakers market more electric models and newly-installed President Joe Biden ramps up the focus on climate change.

The transaction comes on the heels of deals that have seen electric automakers such as Lordstown Motors and Fisker listed on US stock markets, while Tesla has become the biggest car company by market value.

Conventional automakers are racing to bring more electric autos to market to compete with Tesla, with General Motors unveiling a new corporate logo earlier this month to communicate its focus on an electric future.

During the 2020 campaign, Biden promised to build 500,000 new electric vehicle charging stations.

“Just a few years ago, electric vehicles were considered niche,” said Cathy Zoi, chief executive of EVgo.

She noted that public charging stations are needed for the vast market of users who cannot fuel up at home.

“Time is precious for all of us, so a public fast charging option with an expanding footprint like EVgo is essential to meet the rapidly growing needs of EV drivers of all types,” she said

The 11-year-old EVgo, which now has more than 800 charging locations in 34 states, has struck partnerships with GM, Uber and Lyft, as well as supermarket chains like Kroger and Whole Foods that have charging stations in suburban parking lots.

The IPO-like transaction is the latest involving a special purpose acquisition company (SPAC), an increasingly popular vehicle for introducing companies to public markets.

The new company will have an implied value of $2.6 billion, EVgo and Climate Real Impact Solutions said in a press release.

Climate Real Impact Solutions, which is affiliated with Pacific Investment Management Company (PIMCO), went public last fall and trades under the ticker, “CRIS.”

Upon closing of the transaction, expected in the second quarter, the new company will trade under the ticker “EVGO.”

“Starting from our IPO in September, we set out looking for a purpose-driven company making a meaningful contribution in the fight against climate change that was best in class in its sector,” said David Crane, chief executive of CRIS. “We are excited to have found that company in EVgo.”

Shares of Climate Real Impact Solutions were up 52.3 percent at $20.36 in early afternoon trading.

You may also like

logo-white

Your Trusted Source for Capital Markets & Related News

Latest Articles

© 2024 LiveTradingNews.com – For The Traders, By The Traders – All Right Reserved.

The information contained on this website shall not be construed as (i) an offer to purchase or sell, or the solicitation of an offer to purchase or sell, any securities or services, (ii) investment, legal, business or tax advice or an offer to provide such advice, or (iii) a basis for making any investment decision. An offering may only be made upon a qualified investor’s receipt not via this website of formal materials from the Knightsbridge an offering memorandum and subscription documentation (“offering materials”). In the case of any inconsistency between the information on this website and any such offering materials, the offering materials shall control. Securities shall not be offered or sold in any jurisdiction in which such offer or sale would be unlawful unless the requirements of the applicable laws of such jurisdiction have been satisfied. Any decision to invest in securities must be based solely upon the information set forth in the applicable offering materials, which should be read carefully by qualified investors prior to investing. An investment with Knightsbridge is not suitable or desirable for all investors; investors may lose all or a portion of the capital invested. Investors may be required to bear the financial risks of an investment for an indefinite period of time. Qualified investors are urged to consult with their own legal, financial and tax advisors before making any investment. Knightsbridge is a private investment firm that offers investment services to Qualified Investors, Members and Institutions ONLY. Qualified Investors are defined as individuals who have met those Qualifications in the relevant jurisdictions. Members are defined as individuals who have been accepted into the Knightsbridge membership program. Institutions are defined as entities such as banks, pension funds, and hedge funds. If you are not a Qualified Investor, Member or Institution, you are not eligible to invest with Knightsbridge. All investments involve risk, and there is no guarantee of profit. You may lose some or all of your investment. Past performance is not indicative of future results. Knightsbridge is not a registered investment advisor, and this disclaimer should not be construed as investment advice. Please consult with a qualified financial advisor before making any investment decisions. By accessing this website, you agree to the terms of this disclaimer. Thank you for your interest in Knightsbridge.
CLOSE