EVgo, which claims to operate the biggest public fast-charging network for electric vehicles in the U.S., is joining the rush to capitalize on demand for clean-tech investments with plans to list shares via a SPAC merger that would create a company worth an estimated $2.6 billion.
The 11-year-old company, a subsidiary of LS Power, intends to combine with Climate Change Crisis Real Impact I Acquisition Corporation, which trades on the New York Stock Exchange with the ticker CLII, a special-purpose acquisition company targeting businesses focused on carbon reduction. Proceeds from the listing could generate $575 million, including $400 million from a private stock placement, that will be used to further build out EVgo’s network, the company said.
The move comes as sales of battery-powered vehicles, led by Tesla but quickly increasing for its automotive competitors, are poised to grow dramatically throughout the 2020s, says EVgo CEO Cathy Zoi. “We had roughly a million EVs on the road in the United States in 2019 and 2020. We’re expecting that to be about 7 million by 2027,” she tells Forbes.