Electric vehicle (EV) charging firm Pod Point has begun to trade shares on the London Stock Exchange, today (8 November) closing at 220p.
In its prospectus, released last week, the company outlined its intention of issuing 44,315,828 new ordinary shares at an offer price of 225p per share. This would raise proceeds of around £87.7 million, net of underwriting commissions and estimated fees and expenses of approximately £12 million.
These new shares would represent around 28.9% of the expected issued ordinary share capital of the company immediately following Admission.
The proceeds are to be used for both general corporate proceeds and to execute Pod Point’s strategy, which includes investing around £46.7 million in DC rapid owned assets and multi tenancy dwelling installations beginning in 2022.
It also includes investment of up to £20 million in product and software development to optimize the group’s offering across additional routes to market and repayment of around £20 million, constituting all amounts drawn down under the revolving credit facility provided by EDF Energy Customers Limited (EECL) and Legal and General Capital Investments Limited (LGCIL).
EDF acquired a majority stake in Pod Point in February 2020, while Legal and General increased its stake to c.23% following taking a c.13% stake in 2019.
The proceeds will also go towards repayment of approximately £1 million in deferred consideration to the previous shareholders of Pod Point Holding Limited, including CEO Erik Fairbairn, David Surtees and LGCIL in connection with the acquisition of Pod Point Holding Limited.
Alongside this, the company expects to raise approximately £15.0 million from the issue and sale of new shares to EECL and approximately £4.0 million from the issue and sale of new shares to Fairbairn, in each case at the offer price although outside the offer.