Home Technology BofA expects US $ 100,000M in electric vehicle IPOs by 2023

BofA expects US $ 100,000M in electric vehicle IPOs by 2023

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BofA expects US $ 100,000M in electric vehicle IPOs by 2023

(Bloomberg) – A worldwide push towards electrification is sparking a wave of preliminary public choices in the world of electric automobiles that might increase about $ 100 billion by way of the tip of 2023, based on Bank of America Corp.

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Increasing investments in the sector, starting from batteries to automobile charging, would result in spin-offs of company items and public listings, mentioned Patrick Steinemann, Co-Head of Investment Banking for the Global Mobility Group at Bank of America.

“We are already on a wave the place as much as $ 100 billion in IPO earnings can be raised in the electrification house, throughout the whole EV, battery and charging worth chain,” Steinemann mentioned in a interview.

The largest preliminary public providing of 2021 comes exactly from that sector. Electric truck maker Rivian Automotive Inc. raised $ 13.7 billion on its U.S. itemizing earlier this month and is up 47% from its providing worth.

Electric vehicle makers grew to become investor favorites final 12 months, and their shares have seen spectacular rallies amid bets on rising demand for cleaner vehicles. Tesla Inc., the trade chief, has almost doubled in worth over the previous 12 months and billions have been raised by way of preliminary public choices and follow-up inventory gross sales.

Last month, Chinese automobile and battery maker BYD Co. raised $ 1.8 billion in a Hong Kong share placement, its second such deal this 12 months. In January, the Warren Buffett-backed firm raised one other $ 3.9 billion by way of the sale of latest shares.

The rising demand for electric vehicles will result in elevated funding by firms that make batteries for clear automobiles.

The high 10 battery makers are anticipated to almost triple their manufacturing capability by 2022 to fulfill future provide commitments and place themselves for an upcoming surge in demand, based on BloombergNEF.

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