Britishvolt IPO: How to buy this EV battery startup’s shares on LSE?

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Britishvolt IPO: How to buy this EV battery startup’s shares on LSE?

 Britishvolt IPO: How to buy this EV battery startup’s shares on LSE?

Highlights 

  • Britishvolt, the company aiming to build UK’s first EV battery Gigafactory, is mulling an IPO in 2022, with London Stock Exchange as its most likely host.
  • The startup was earlier widely expected to make its trading debut via a SPAC on an US-based exchange but is encouraged by UK’s plans to ease its stock listing rules.

Britishvolt, the company aiming to build the UK’s first Gigafactory that would produce batteries for electric vehicles (EVs), is planning to select the London Stock Exchange (LSE) for an initial public offering (IPO) in 2022, instead of New York-based exchanges.

EV battery startup’s potential London listing can be called the result of the encouragement of the UK’s proposed changes to its stock listing rules.

Britishvolt’s IPO plans

The company’s chairman Peter Rolton said London would be the place Britishvolt would most likely choose to go public.

The Gigafactory startup was earlier expected to publicly list on US exchanges by merging with a special purpose acquisition company (SPAC).

The company’s founder and CEO, Orral Nadjari, had stated in June that the company would make its final decision on where it chooses to list in the next 3 months. Thus, indicating that Britishvolt’s IPO listing destination plans are expected to be confirmed at any moment.

The company has appointed UK based banking giant Barclays Plc (LON: BARC) as its advisor.

IPO

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Back in April, the company had appointed US-based asset management firm Guggenheim Capital LLC and Barclays Plc to explore merger options in the US, which would also include a SPAC.

Also, in April, the company had hired Barclays for its next two fundraising rounds with the aim of raising about £350 million by the end of summer this year.

Once the London listing is finalized and the IPO date and price is fixed, retail investors could get an option of buying the shares on LSE.

Gigafactory construction

Britishvolt plans to invest up to £4 billion for the construction of its Gigafactory located in the North Sea in Northumberland.  The company, which was founded in 2019, is also expected to confirm its construction contractor by the end of 2021.

The company had announced earlier this month that it plans to build its second Gigafactory of 60 GWh in Quebec, Canada. The Canadian plant is expected to be constructed in a year or two after its Northumberland plant is built.

The company also expects to build it as close to its UK plant. The company selected Canada as its next large-scale battery manufacturing site due to Canada’s access to raw materials, clean energy and good logistics.

Anglo-Swiss global commodity trading and mining firm Glencore (LON: GLN) had recently invested an undisclosed amount into the company.

UK’s proposed stock listing rule changes

The UK’s chancellor Rishi Sunak had commissioned two reviews to look into UK stock listing rules. The Treasury is looking to attract more technology firms to list on the LSE by making fundraising easier and faster. It also plans to attract more participation from retail investors.

Furthermore, the treasury is also considering some proposed changes made by British MP Lord Hill. As per Lord Hill’s review, the UK would allow a company’s founder to retain more control of the firm post listing.

Mr. Rolton stated that his advisors had informed him such proposed rule changes would help with its listing plans.

Bottom Line

Domestic EV battery manufacturing has risen in focus as demand for EVs are expected to rise in the coming years. Also, electric cars are expected to aid in the UK’s transition towards a lower-carbon economy.

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