Fastned Went Public With Ultimate Goal To Raise €40 million
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).
“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.”