The charging infrastructure provider ChargePoint has announced its IPO. As with Nikola Motor, the IPO will take place through a merger, in this case with the investment firm Switchback Energy Acquisition.
++ This article has been updated to include the latest info as below. ++
ChargePoint has said that this move puts the company’s value at $2.4 billion and brings net proceeds of $493 million. The announcement follows ChargePoint’s recent round of financing, in which the company secured $127 million in additional funding.
ChargePoint says it intends to use the proceeds of the IPO to finance growth, and the $493 million is intended to spur its commercial, fleet and consumer business. At the same time, debts also have to be serviced. “ChargePoint expects to use transaction proceeds to expand its reach in North America and Europe, further enhance its technology portfolio and significantly scale its commercial, fleet and residential businesses ahead of the anticipated introduction of an increasing number of new EV models and rising EV penetration,” the company writes.
ChargePoint’s merger partner Switchback is already listed on the stock exchange and trades on the New York Stock Exchange under the symbol ‘SBE’. The future abbreviation of the merged company was not revealed in the company’s press release. The boards of directors of both companies have already approved the plan. The shareholders’ approval and the US Securities and Exchange Commission (SEC) are still pending – closing is expected by year-end.
“ChargePoint has a proven and capital-light business model that combines hardware and high-margin, recurring software subscriptions and services with extensive and strong customer relationships,” said Scott McNeill, CEO and CFO of Switchback. “As a result, we believe ChargePoint will continue to grow its strong market position as the EV industry evolves. Switchback and our investors are excited to partner with the talented ChargePoint team to advance their vision.”
ChargePoint will continue to be led by long-time President and CEO Pasquale Romano and the existing management team.
Update 02 March 2021: As expected, ChargePoint has now completed its IPO. Following its merger with investment firm Switchback Energy Acquisition, completed on 26 February, ChargePoint shares now trade on the New York Stock Exchange (NYSE) under the ticker symbol “CHPT.”
ChargePoint had approximately $615 million in cash on hand at the close of the transaction, which they say they will use to fund ongoing operations and expand the company’s commercial, fleet and residential businesses in North America and Europe.
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