Dutch charging infrastructure operator Allego has announced its IPO. Through a merger with Spartan Acquisition Corp., a listing on the New York Stock Exchange is planned from the fourth quarter of 2021. In the process, a carmaker will also join the company.
Allego is choosing the path of a merger with an already listed company, a so-called SPAC. SPACs are investment firms set up precisely for the purpose of merging with another company, hence the term ‘Special-Purchase Acquisition Company’. Since in Allego’s case the merger partner Spartan Acquisition Corp. is already listed on the NYSE under the ticker symbol SPAQ, the IPO is thus significantly accelerated. A classic IPO can take up to two years in the USA.
According to the Allego announcement, the merged company is valued at 3.14 billion dollars, the equivalent of 2.65 billion euros. The IPO is expected to raise $702 million, currently equivalent to 592 million euros. This sum includes $150 million in PIPE investments.
Allego unsurprisingly justifies the “highly strategic transaction” with better access to new financial resources. This should enable the company to “finance the construction of new public charging stations, expand our technology and implement our expansion plans”. The company will continue to focus on the construction of fast and ultra-fast charging networks.
The merged company will continue to be led by current CEO Mathieu Bonnet and the existing management team, Allego said in the statement. Upon completion of the merger – targeted from before the end of the year – Allego will then trade in New York under the symbol ALLG.
“We are excited to announce our strategic partnership with Spartan, which will provide capital to accelerate our leadership position within the European charging market, all while maintaining a strong financial position throughout the growth phase,” Bonnet said.
In 2018, Allego was acquired by French investor Meridiam. In the announcement, Allego states that Meridiam intends to “remain a significant shareholder”. As Meridiam believes in Allego and its future, the Dutch company expects the investor to contribute 100 per cent of its equity to the new company.
Another investor will contribute ten million US dollars to the merged company: Fisker announced that the US electric car manufacturer will give its customers in Europe free access to Allego’s charging network for a year via the cooperation with Allego, among other things. “Allego has been a long-standing pioneer in the push to create a seamless pan-European electric vehicle charging network,” says Henrik Fisker, chairman and CEO of Fisker. “Our investment in the PIPE is motivated by strategic and tactical considerations, ensuring we have a stake in the future of EV charging networks while delivering tangible benefits to our customers.”
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