• EVBox is aiming for an IPO this spring
• Merger with the listed special purpose vehicle TPG Pace Beneficial Finance
• Income should flow into expansionAccording to the company, EVBox is a leading company in Europe for charging solutions for electric vehicles and operates over 190,000 charging points in more than 70 countries. In addition to Europe, the company is also present in North America, but does not yet have a comparable market position there. That should change soon, however, because the Dutch company now wants to collect cash with an IPO in order to advance its expansion, particularly in Europe and North America.
EVBox seeks listing on NYSE through merger
EVBox is choosing a path to the stock exchange that has recently become increasingly popular with startups: The charging station provider is planning a merger with TPG Pace Beneficial Finance, a listed special purpose vehicle whose shares are already traded on the NYSE. Companies like TPG Pace Beneficial Finance are also called SPACs – short for Special Purpose Acquisition Company – and serve the sole purpose of merging with another company in order to accelerate its IPO. Because an independent IPO often takes many months. Upon completion of the transaction, the combined company will then be called EVBox Group and trade on the New York Stock Exchange under a new ticker symbol. According to the press release, this should be the case towards the end of the first quarter.
The Tesla competitor Nikola also brought its shares to the stock exchange using this method in summer 2020, as did the electrical startup Canoo just before Christmas. TPG, which owns TPG Pace Beneficial Finance, also has experience in this area. According to the press release, TPG has carried out five successful IPOs by SPACs since 2015 and has brought a total of 55 companies to the stock exchange in various ways over the past ten years. The shareholders also responded enthusiastically: The TPG Pace Beneficial Finance share jumped 146 percent the day after the announcement.
EVBox wants to prepare for the increasing demand for e-mobility
EVBox was founded in 2010 and offers charging solutions for electric vehicles and corresponding cloud-based software offers. Both AC charging stations and DC charging stations are part of the company’s portfolio, which was taken over by the energy group Engie in 2017. According to the company, it will hold a stake of more than 40 percent in EVBox even after the IPO and will “remain an important strategic partner”.
With the IPO, EVBox expects “more than 425 million US dollars in cash” on its balance sheet. Of this, $ 225 million is to be collected through a PIPE transaction directly from institutional investors, including “funds and accounts managed by BlackRock, Inclusive Capital Partners, Neuberger Berman Funds and Wellington Management”. What this capital will be used for is also already clear: “The cash proceeds from the transaction will be used to finance business operations, support growth and acquire equity of 180 million US dollars from Engie,” it says in the press release. Specifically, the proceeds – minus the amount paid to Engie – are to be used as growth capital to boost business worldwide and expand EVBox’s technology portfolio. The focus should continue to be on Europe and North America.
EVBox is ready to “take a leading role in the anticipated accelerated introduction of electric vehicles,” said CEO Kristof Vereenooghe, according to the press release. “At EVBox we are working towards a future in which our everyday traffic is electric, emission-free and supported by a clean charging infrastructure. […] With our new partners at TPG, ongoing strategic support from Engie, and a group of new renowned investors, we will be well positioned to meet these goals by accelerating product development and providing end-to-end solutions to our growing customer base reach, especially in North America, “added Vereenooghe.
EVBox with an enterprise value of $ 1 billion?
EVBox benefits from the increasing spread of electric cars not only through the sale of its chargers but also through suitable software solutions that are offered by subscription. In addition, the company generates additional recurring income through unspecified services and transaction processing fees. However, it is not known how much turnover the Dutch are currently generating in this way. There is also currently no information on corporate profits or losses. Nevertheless, after the merger with TPG Pace Beneficial Finance, according to the press release, the company is said to have an implicit company value of 969 million US dollars – almost one billion US dollars. Including the $ 425 million in cash that will be generated by the IPO, the pro forma equity value is around $ 1,394 million. Whether this assessment is justified or whether investors have a completely different view of EVBox remains to be seen after the IPO in the spring.