Fastned Went Public With Ultimate Goal To Raise €40 million

2 years ago by Mark Kane 9

Fastned charging station

Fastned charging station

FastNed Quick Charging Network In Netherlands

Fastned Quick Charging Network In Netherlands

On July 9, Fastned began a new chapter of its short history (founded in 2012) as public company.

The Netherlands operator of fast charging stations issued a first tranche of 400,000 certificates of shares at 10 Euro apiece, which were fully reserved within 10 days during the pre-subscription in May.

Ultimately, Fastned aims to raise €40 million to build 201 stations at highways in about three years. All of them will have at last two chargers with all kinds of plugs.

As of today, there is at least 9 or 10 on-line and another 10 under construction.

Going public for a charging operator is an interesting venture to observe and could set an example for others to follow. Fastned already announced that it is now possible to pre-subscribe to certificates of shares for the next tranche (here is the prospectus, in which we happily found that InsideEVs.com was one of source of information on market development).

Fastned rates

Fastned rates

“We will start the IPO with the issue of a first tranche of 400,000 certificates of shares at 10 Euro apiece. During the pre-subscription in May this first tranche was fully reserved within 10 days. It is now possible to pre-subscribe to certificates of shares for the next tranche.”

“In the Netherlands it is very rare for a young company like Fastned to have an IPO. We have taken this step because many people believe in electric cars and have asked us from the start if they could invest in Fastned.”

“With our IPO we plan to raise a total of 40 million Euro in different tranches in order to finance the network of 201 fast charging stations. To roll out the network within three years, the pace of construction will be increased to 1 or 2 stations per week. As of today, 9 stations are operational and 10 stations are under construction.”

“That sums up the good news! With the conclusion that national coverage will be reached at the end of this year.”

For now, chargers at Fastned sites can be used for €100 a month ($135) with unlimited access or €0.69 per kWh ($0.93) at power of 50 kW. Energy is provided solely from renewable sources.

Break-even for the business is expected as described:

“Fastned is planning to build one station per week. By continuously improving the design the costprice per station is reduced step by step. On top of this, overhead costs can be spread out over an ever growing number of stations. As a result, with a network of 50 stations the break-even point per station will be around 15 charges per day. In the test phase we already see 5 to 10 charges per day”

At least a few years will pass before anybody could see a return on investment, but if everything goes well, then Fastned could even expand to other countries:

“For a minimum of three years Fastned will primarily be investing in the network and no dividends will be paid out. After this Fastned aims for a stable dividend. A significant part of profits will be invested to further expand the net-work to urban locations and other countries. The return on investment will be largely dependent on the valuation of depository receipts. Apart from this there is a social return: lower emissions and improvement of air quality.”

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9 responses to "Fastned Went Public With Ultimate Goal To Raise €40 million"

  1. kdawg says:

    $135/month seems expensive.
    Especially if you compare it to Tesla’s $2000 for life price.

    1. Thomas says:

      … and that seems still cheap compared to those 0.93 $/kWh. You have to fll up 145 kWh per month to break even with the unlimited package. That is two pretty almost full charges with a Tesla.

      21% sales tax has to be added on top of that. That’s a total of 71€ for a full 85 kWh battery. Not many cars will cost you more in gas than that for 400km …
      Yea, I do understand that it’s not cheap to build such things, but I would avoid it at all costs, considering you can charge at home for a third of the price (in europe).

      1. Rob Stark says:

        Can you charge up for a third of that price in Europe with clean energy at home?

        I know in Germany residents can choose either fossil fuel generated electricity or pay a premium and buy renewable electricity.

        1. Cavaron says:

          Yeah, well – you can buy the “mix” in the electric net (about 45% fossile, 30% renewable and 25% nuclear) or you can buy from a certifed 100% renewable provider. In both cases, the price may vary from 0.25 to 0.30 €/kWh (for Germany). Many charging stations are free here, in other cases you pay something between 0.29 to 0.36 €/kWh. So Fastned realy IS expansive, even for Germany. Don’t know about home electricity prices in the netherlands, but can’t be much more.

          1. Thomas says:

            http://www.bdew.de/internet.nsf/id/39BAE817DA547139C125796B00460F4B/$file/2013_01_Europ%C3%A4ischer%20Strompreisvergleich_1.Hj.2013.pdf

            They actually have to pay about 0,10 €/kWh less, I don’t know about their renewable premiums though.

            Charging for free obviously doesn’t work as a buisness model, but I expect that a charging station owner does have some significantly better conditions than a regular consumer. So something between the consumer price and consumer price with a resonable premium seems viable on the market. But i can’t see that you can attract enough customers with that kind of emergency fees.

        2. Thomas says:

          I’m paying 0.27 €/kWh in Germany for renewable electricity from a company specialized on renewable energy. That’s even less than a third of those 0.83 €/kWh including taxes. It should be even cheaper in netherlands.

          Nearly every company offers some kind of renewable product for a premium of like 10%, but why would you want to give your money to a coal burning company, when you can chose one with a proper ecological mindset.

        3. Mikael says:

          I can easily get a fixed price over the year for 1/8th of that price with all renewable electricity.
          But that very much depends on which country you are in.

          Are the Fastned building any renewable energy capacity of their own? Because there is barely no renewable electricity in the Netherlands at all.

  2. Surya says:

    I love their concept, but I don’t see their financing working out long term. And their pricing scheme is… less than cheap.

    I hope they build all of the stations before going bankrupt. I don’t wish that would happen, but I expect it to.

  3. Hans says:

    The thing is that Fastned and other like The New Motion in the Netherlands are not expensive, it simply is a fair market price. You cannot offer such infrastructure at significantly lower prices.
    The comparison I see people make above refers to slow charging poles in cities. Charging at these poles costs somewhere around one to two euro’s a kWh. The Government pays the lion’s share of this and customers pay only 0,35 per kWh. This subzidization will only be a temporary thing, when more of these poles are needed prices have to go up to reach break-even.
    Don’t forget that also home charging doesn’t cost 0,25 ear/kWh. First you need to invest in a wall box and possibly a upgrade of your grid connection before that is possible.

    See their blog on: http://fastned-en.tumblr.com/post/86301041150/the-price-of-charging