Expion360 IPO: All you need to know about XPON stock

Highlights

• Expion360 aims to go public on the Nasdaq Capital Market and has applied to get XPON as its stock symbol.
• In fiscal 2021, Expion360 had a net loss of US$ 4.72 million compared to just US$ 876,480 in 2020.
• Expion360 claims to have 175 wholesale customers, and it aims to expand its battery line.

The Redmond, Oregon-based Expion360 Inc. is looking to go public in the United States and plans to sell 2.15 million shares of its common stock, according to the documents filed with the regulatory authorities.

Expion360 manufactures lithium batteries for the recreational and marine vehicle industry. According to the amended prospectus filed with the US Securities and Exchange Commission (SEC), Expion360 has priced the shares between US$ 7 to US$ 9 apiece and expects to raise up to US$ 19.3 million from the offering.

Key details of Expion360 IPO

As per the prospectus filed by the SEC, the leading underwriters for the initial public offering (IPO) are Alexander Capital and Paulson Investment.

Apart from selling 2.15 million common shares, Expion360 will give the underwriters an option to buy an additional 321,750 shares at the IPO price for up to around US$ 2.89 million.

Expion360 aims to go public on the Nasdaq Capital Market and has applied to get XPON as its stock symbol.

In 2022, the IPO market has remained weak compared to the previous year, and it is unclear when Expion360 will start trading on the stock exchange.

Financial and relevant details of Expion360

In fiscal 2021, Expion360 had a net loss of US$ 4.72 million compared to just US$ 876,480 in 2020. Meanwhile, the company's cash and cash equivalents were US$ 773,228 in 2021, reflecting an increase from US$ 290,675 in 2020.

The worth of the company's total assets increased to US$ 6.5 million in 2021, and its gross profit was US$ 1.6 million.

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Expion360 claims to have 175 wholesale customers, and it aims to expand its battery line by providing it in the solar, wind, and grid back-up sectors.

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Bottom line

Lithium batteries are becoming popular worldwide, and their market is expected to grow in future. According to a Markets and Markets report, the lithium battery market is expected to rise from US$ 41.1 billion in 2021 to US$ 116.6 billion by 2030.

During the mentioned period, the industry is expected to grow at a compound annual growth rate of 12.3 per cent.

Sometimes, retail investors get an option of buying pre-IPO stock of private companies going public and interested investors could keep a watch if Expion360 offers the pre-IPO stock in future.

As the stock market is volatile, one should research before making investments.

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Please note, the above content constitutes a very preliminary observation or view based on digital trends and is of limited scope without any in-depth fundamental valuation or technical analysis. Any interest in stocks or sectors should be thoroughly evaluated taking into consideration the associated risks.