Electric vehicle charging firm Pod Point prepares for stock market flotation

POD POINT, Britain’s largest provider of electric vehicle home charging kits, is preparing for a stock market flotation that could raise around £120 million in capital for the company.

The Initial Public Offering (IPO) could value Pod Point at several hundred million pounds, with some sources even suggesting a figure as high as £725 million, roughly the equivalent of $1 billion, a “unicorn” in investment parlance.

Pod Point is aiming for a 25% free float and the listing is set to provide a windfall for the company’s two largest investors, French energy giant EDF and Legal & General Capital Investments, which hold 78% and 22%, respectively.

Legal & General is, however, reportedly expected to divest itself of at least a small portion of its stock, with EDF retaining most of its existing shares.

When Legal & General first took a £13 million stake in 2019, it valued Pod Point at £100 million. By the time EDF acquired its majority holding last year, it estimated the company’s value at £130 million.

The upcoming flotation follows news at the end of September that Pod Point had appointed Andy Palmer, former CEO of Aston Martin, as a senior independent director.

Palmer left Aston Martin last year partly due to its poor post-flotation stock market performance, but is now the CEO of Switch Mobility, an electric bus maker and so has experience in the field of EV infrastructure. Palmer was also keen to see an electric version of the Aston Martin Rapide grand tourer come to market, though the project was scrapped prior to production.

Pod Point was founded in 2009 by Erik Fairbairn and, as well as being the UK’s biggest provider of EV home-charging technology, is also the second largest provider of workplace chargers. Thus far, the company has installed around 89,000 home chargers and 13,000 commercial units.

The Competition and Markets Authority (CMA) predicted earlier this year that the UK would need between 280,000 and 480,000 new public chargers by 2030 to deal with increased demand following the government’s decision to ban the sale of new petrol and diesel cars by the end of the decade; the figure currently stands at around 26,000.

Pod Point predicts that the UK will need 25 million public and private charging points by 2040.

“Now is the right time for us to list,” said Fairburn. “As a market leader, we are well placed to capture the significant market opportunity ahead.

“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.

“We look forward to welcoming our new investors and continuing to deliver value to all our stakeholders.”

When listed, it’s likely that Pod Point will receive the London Stock Exchange’s Green Economy Mark, a designation for businesses that derive more than 50% of their revenue from products and services that contribute to environmental improvements, such as climate change mitigation and adaptation, waste and pollution reduction and the circular economy.

The IPO is expected to take place in early November.

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