Pod Point, a UK company that provides charging equipment and points for electric vehicles (EVs), has announced its intention to list its shares on the London Stock Exchange (LSE). The announcement comes at a time when the UK is grappling with a fuel crisis that has boosted interest in electric vehicles, with their market share anticipated to increase by almost a third by Christmas.
So, when is the IPO happening? And can you buy shares in the company? Let’s take a look.
What is Pod Point?
Pod Point was founded in 2009 by mechanical engineer Erik Fairbairn. It has grown to become one of the UK’s leading charging networks for electric vehicles.
The company offers both home and workplace EV charging solutions. It also has over 5,200 public charging bays across the UK. Customers can find these charging points by using a mobile phone app.
French energy giant Electricite de France (EDF) acquired a majority stake in Pod Point in February 2020 in a deal reportedly worth £110 million.
As of its most recent financial report, the company was not profitable. It made a £6.7 million pre-tax loss in the six months to 30 June, though this was down from a bigger loss of £9.2 million at the same point in 2020.
When is Pod Point’s IPO due to happen?
No official date for the IPO has been set, but it’s widely expected to happen before the end of the year. There are also no details as to how much the company plans to raise.
Pod Point is planning a free float of at least 25% of its shares on the LSE main market. EDF is expected to retain its majority stake in the company.
What does the future hold for Pod Point?
Though Pod Point is a loss-making business at this point in time, there’s much to be optimistic about for the future. The EV charging market in the UK is growing rapidly as the popularity and sales of electric vehicles surge.
The UK also plans to ban the sale of new petrol- and diesel-powered cars from 2030. This will further boost the market and demand for charging equipment and solutions.
Pod Point says that it will use the funds from the IPO to fund expansion and further develop its technology products. It particularly plans to invest heavily into more charging points to meet increasing demand.
How can you buy shares in Pod Point?
You will be able to buy Pod Point shares once the company goes public. You can do this using a share dealing account. If you don’t have one already, check out our comparison of some of the top providers of share dealing accounts in the UK.
You can also invest in the company using a stocks and shares ISA. This is a tax wrapper that shields your investment returns from tax.
Can you buy shares before the company’s IPO?
Many companies limit pre-IPO stock to institutional investors. However, that doesn’t mean that it’s completely impossible for retail investors to get their hands on Pod Point’s pre-IPO stock.
For example, some brokerages might be given an opportunity to participate in an IPO or even allocated IPO stock to sell to their customers. So if you have a brokerage account or if you plan to open one, you can contact them to see if they will be providing access to Pod Point’s stock before the official IPO.
However, keep in mind that while getting in early may put you in a good position to make handsome profits if the company’s stock rises in value upon flotation, there is an equal risk of losses if the stock’s value falls.
As with any other investment, don’t forget to do your research first and seek professional advice if you need it. If you are new to the world of investing, check out our investing guide for all the information you need to get started.
Please note that tax treatment depends on your circumstances and may be subject to change in future. The content in this article is provided for information purposes only. It is not intended to be, neither does it constitute, any form of tax advice. Readers are responsible for carrying out their own due diligence and for obtaining professional advice before making any investment decisions.
Some offers on The Motley Fool UK site are from our partners — it’s how we make money and keep this site going. But does that impact our ratings? Nope. Our commitment is to you. If a product isn’t any good, our rating will reflect that, or we won’t list it at all. Also, while we aim to feature the best products available, we do not review every product on the market. Learn more here. The statements above are The Motley Fool’s alone and have not been provided or endorsed by bank advertisers. John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. The Motley Fool UK has recommended Barclays, Hargreaves Lansdown, HSBC Holdings, Lloyds Banking Group, Mastercard, and Tesco.