BofA says wave of electric vehicle IPOs to arrive in 2023

November 25, 2021 | 1:38 pm

A global push toward electrification is causing a wave of Initial Public Offerings (IPOs) in the electronics industry. electric vehicles that could raise about $ 100 billion by the end of 2023, according to Bank of America (BofA).

Increasing investments in the sector, ranging from batteries to charging cars, will see companies go public, Patrick Steinemann, co-head of Global Mobility Group Investment Banking at BofA, told Bloomberg.

“We are already on a wave that will see up to $ 100 billion in IPO revenue raised in the electrification space, across the entire EV, battery and charging value chain,” Steinemann said.

The largest IPO of 2021 comes precisely from that sector: electric truck maker Rivian It raised $ 13.7 billion on its U.S. listing earlier this month and its share price has soared 47% since debut.

According to the specialized media, electric vehicle manufacturers became a favorite sector of investors last year and their shares have had an impressive rally, in the midst of betting on the growing demand for cars based on clean energy.

The industry leader, Tesla, has nearly doubled in market value over the past year, plus billions of dollars have been raised through IPOs.

Chinese car and battery manufacturer BYD It raised $ 1.8 billion last month in a Hong Kong stock placement, its second such deal this year. In January, the company backed by Warren buffett made another $ 3.9 billion by selling new shares.

The growing demand for electric cars will lead to increased investment by companies that make batteries for clean vehicles.

The top 10 battery makers are expected to nearly triple their manufacturing capacity by 2022 to meet future supply commitments and position themselves for an upcoming surge in demand, according to Bloomberg.

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