Biggest IPO by a UK company: Arrival is valued at £ 9.5 billion as the electric vehicle maker is listed on the US Nasdaq
- Arrival shares traded on the Nasdaq yesterday at $ 22 each
- This gives the electric vehicle maker a valuation of around $ 13.6 billion (£ 9.5 billion).
- According to data, it is the largest float ever carried out for a UK company
- Arrival was founded in 2015 by Denis Sverdlov – a former Russian politician
The London-based electric bus manufacturer Arrival made its debut on the New York Stock Exchange in the largest float of all time for a British company.
The start-up, which has not yet started production of its vehicles and has not made a profit, traded on the Nasdaq yesterday at $ 22 per share and valued it at around $ 13.6 billion (£ 9.5 billion) .
That’s higher than Deliveroo, which is targeting a valuation of up to $ 12.2 billion by the end of this month and beats the previous record of $ 11.4 billion for Granada Media in 2000, according to Dealogic data.
In short: Arrival has yet to build its first electric vehicle and not yet make a profit
Arrival, which was founded in 2015, is the latest in a series of companies using “Spacs” to get a listing on a public exchange.
Spacs, or blank check companies, are acquisition vehicles that list private companies and then look to buy them and go public. The arrival was merged with one such Spacs – CIIG based in New York – to float.
A record number of Spacs hovered over the past year, particularly in the US, although exchanges elsewhere are keen to jump on the bandwagon.
British officials are considering revising listing rules to make it easier for Spacs to go public in London – although London Stock Exchange chief David Schwimmer recently warned investors could run the risk of getting burned by putting their money in Spacs.
Arrival has raised around US $ 660 million through the public offering to expedite delivery of its electric vehicles and expand its global network of “micro-factories” that “are rapidly scalable and enable decentralized production”.
The company, which currently has a microfactory in Bicester, Oxfordshire, and two others in the US, said it will be road testing its vans this summer and its buses in the fall.
This means that production of electric buses should start by the end of the year and delivery vans by the third quarter of next year.
A stroke of luck: Sverdlov, through its holding company Kinetik, owns more than 76% of the shares in Arrival, a share of USD 10.4 billion at yesterday’s opening price
There was “strong interest” in his vehicles after an agreement was reached to provide up to 10,000 electric vehicles for courier UPS.
Sales are expected to reach $ 1 billion in the next year, but will rise to a whopping $ 14 billion by 2024 and become profitable in 2023.
Arrival, which employs 1,800 people in the UK, US and Germany, has received financial support from South Korean automakers Kia and Hyundai and US asset manager BlackRock.
Founder and CEO Denis Sverdlov – a former Deputy Telecommunications Minister of Russia – said: “We believe that all vehicles will soon be electric because it’s better for people, the planet and the economy.
‘Arrivals’ invention of a unique new way to design and manufacture vehicles using local micro-factories enables the construction of highly desirable yet affordable electric vehicles – designed for your city and made in your city.
“Going public is an opportunity that will allow us to continue to scale globally and bring these products to more and more cities and people.”
Sverdlov owns more than 76 percent of Arrival through its holding Kinetik, a stake worth $ 10.4 billion at yesterday’s opening price.
High expectations: Arrival expects sales of 1 billion US dollars for the next year, which, however, will rise to a whopping 14 billion US dollars by 2024 and become profitable in 2023