IPOs in EVs could raise $100bn until 2023, BoA

Aworldwidepushtowardelectrificationiscausingathree-yearwaveofinitialpublicofferingsintheelectricvehiclespace

thatcouldraiseabout$100billionuntiltheendof2023,

accordingtoBankofAmericaCorp.

Growing investments

Growinginvestmentsinthesector,spanningfrombatteriesto

chargingcars,willseecompanies

spinoffunitsaswellasgopublic,saidPatrickSteinemann,

co-headofGlobalMobilityGroupInvestment

BankingatBankofAmerica.

“We’realreadywellintoawavethatwillseeupto$100billion

ofIPOproceedsbeingraisedintheelectrificationspace,

acrosstheentirevaluechainofEV,batteriesandcharging,”Steinemannsaid

inaninterview.

ThelargestIPOof2021stemspreciselyfromthatsector;Electric-truckmakerRivianAutomotiveInc.raised$13.7billionin

itsU.S.listingearlierthismonthandhasgoneontosoar47%fromitsofferprice.

Electricvehiclemakersbecameinvestordarlingslastyearand

theirstockshavestagedimpressive

ralliesamidbetsongrowingdemandforcleanercars.

IndustryleaderTeslaInc.hasalmost

doubledinvalueoverthepastyearandbillionshave

beenraisedthroughbothIPOsandfollow-onsharesales.

ChinesecarandbatterymakerBYDCo.lastmonth

raised$1.8billioninaHongKongshare

placement,itssecondsuchdealthisyear.

InJanuary,theWarrenBuffett-backedcompany

fetchedanother$3.9billionsellingnewshares.

Growingdemandforelectriccarswillleadto

increasinginvestmentsbythecompaniesmaking

batteriesforcleanvehicles.

Tripling manufacturing capacity

Thetop10batterymakersareexpectedtonearly

tripletheirmanufacturingcapacityby2022to

meetfuturesupplycommitmentsandpositionthemselves

foranupcomingsurgeindemand,

accordingtoBloombergNEF.

“Thebatterycompanieswillbecomeauniverseof

theirown,theyarenowenteringastagewhere

massivecapacitybuilduprequiresalotofcapitalto

keepupwiththegrowthofEVdemand,”Steinemannsaid. “Sofar,batterycompanieshavelargelybeendebt

financedbutthenextstageoftheirgrowthwill

befinancedthroughawaveofIPOs.”

OneofthelargestIPOstocomeoutofAsianextyear,

andpotentiallyglobally,willbethespinoff

ofLGChemLtd.’sbatteryunitLGEnergySolutionin

SouthKorea,whichcouldraiseabout$10

billion.It’soneoftheworld’sbiggestbatterymakers

afterChina’sContemporaryAmperexTechnologyCo.

LGEnergySolutionresumedtheIPOprocessafter

reachinganagreementovertheGeneralMotorsCo.recall

ofChevroletBoltelectricvehiclesinOctober.Itplans

tosubmittheIPOprospectusin

earlyDecemberandtakeinvestorordersearly

nextyear,theSeoulEconomicDailyreported.