The long-awaited flotation of one of Britain’s biggest providers of electric vehicle (EV) charging infrastructure will be priced below initial expectations amid growing jitters in the London IPO market.
Sky News has learnt that Pod Point is expected to sell shares at the bottom of a 225p-275p range following a board meeting to approve the move later on Wednesday.
Pod Point’s listing, which will value the company at £350m, will reinforce the level of investor anxiety about new issuers arriving on the London Stock Exchange.
Sources said that Pod Point’s advisers had now covered the book at the bottom of the range, meaning that the initial public offering was likely to proceed.
Image: Bank of America, Barclays and Numis are working on the IPOThe outcome is a surprise given the hype surrounding EV and related businesses, particularly given the timing of Pod Point’s bookbuild in the run-up to and during the COP26 climate summit in Glasgow.
AdvertisementErik Fairbairn, Pod Point’s founder and chief executive, is expected to invest £4m of his own money in the IPO, with £120m raised in gross proceeds to accelerate the company’s expansion.
“I believe our smart network of charge points will be key in enabling the mass adoption of electric vehicles, helping our customers to reduce their carbon footprint and supporting the UK to meet its net zero carbon emissions target,” Mr Fairbairn said when Pod Point confirmed its intention to float last month.
More from BusinessThe company has recruited Andy Palmer, the former Aston Martin chief executive, as its senior independent director, with majority shareholder EDF Energy retaining a stake of over 50% following the float.
London’s IPO market has seen a mixed 2021, with a number of prominent listings being pulled by companies citing difficult market conditions.
The latest to abandon its plans was Rubix, an industrial parts supplier, which would have been the largest in its sector since Royal Mail was privatised in 2013.
Others to have cancelled their float plans include Pure Gym.
Pod Point, which declined to comment, was founded in 2009 by Mr Fairbairn and competes with rivals such as Chargemaster, which is now a subsidiary of BP.
