What we know about EVgo’s IPO plans
- EVgo is a maker of electric vehicle charging stations.
- EVgo will become a public company as part of a SPAC deal.
- The company expects to increase its charging stations from around 1,400 today to 16,000 by 2027.
EVgo is one of the largest charging networks for electric vehicles in the U.S. and announced late last week an initial public offering through a special purpose acquisition company, or SPAC.
EVgo was founded in 2010 and today operates more than 1,400 charging stations in 67 cities across 34 states. The company increased its customer count from around 40,000 more than a year ago to more than 220,000 today.
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Most notably, EVgo has a contract with automaker giant GM to add more than 2,700 new fast chargers through 2025.
EVgo will merge with Climate Change Crisis Real Impact 1 Acquisition Corporation (NYSE: CLII), a SPAC company that already trades on the stock market. As part of the deal, EVgo will raise around $575 million and will use the new cash to pursue its existing growth strategy, including building its charging network and establishing itself as a global leader.
SPAC deals have become more common as of late. Here is an Invezz report of a similar SPAC deal from January 2020.
CEO Zoi: 2027 outlook
The electric vehicle market is growing so quickly and EVgo considers itself to be a “central part of that equation,” EVgo CEO Cathy Zoi said Friday on CNBC’s “Squawk Box.” The company boasts the largest number of fast-charging stations in the U.S but its network today is not enough today to address the growing demand.
As a public company, EVgo expects to operate around 16,000 stations by 2027, the CEO said.
Favorable political environment
The auto sector is a very important component of the U.S. economy while the global auto market continues to transition towards cleaner and greener technology. Having worked with President Joe Biden when he was acting as Vice President under Barack Obama, it is evident to Zoi that Biden fully understands the importance of the sector.
Biden will likely help spur the industry to create an environment where everyone has reliable and convenient access to chargers, the CEO said.
Consumers need to see chargers
One of the biggest hindrances impacting the electric vehicle revolution is access to charging stations. People “need to see” there are many chargers where they need to be to eliminate what’s known as range anxiety — a fear that a battery won’t last long enough to reach a destination.
EVgo not only addresses consumer concerns with its products, but it is strategically positioned to allow consumers to plug in their car and then “do what else you were going to do anyway,” she said.
Most notably, EVgo charging spaces are located in grocery store parking lots so the car’s battery charges while consumers are buying their groceries.