The revived car firm rang the bell of the Madrid Stock Exchange, crowning itself the first automobile brand to be introduced to the BME Growth market. The meeting was moderated by Ebro CEO Pedro Calef and EV Motors President Rafael Ruiz.
Under the auspices of EV Motors Ebro went public with a valuation of €329 million, with a base price of €6.88 per share.. This development comes after they achieved a capital increase of €40 million in August, with an oversubscription of almost 25%. Managers assured that The publication will allow them to “accelerate the implementation of the strategic plan.”
The event began with words from Jesus Gonzalez, Director of BME Growth, highlighting the company’s work and efforts to achieve this day. Likewise, Gonzalez emphasized that EV Motors played a leading role. the largest financial transaction before the company’s inclusion in the BME.
For his part, EV Motors President Rafael Ruiz said that “our IPO represents not only the growth of EV Motors, but also “the revival of a historical brand such as Ebro and the possibility of accelerating the process of reindustrialization of the plant in the Barcelona Free Trade Zone”.
Today’s stock market transaction was carried out with the participation of placement bank Andbank, agent bank Renta4, registered consultant DCM, and the participation of Cuatrecasas, Deloitte, GAP, BDO Auditores and RSM Corporate.
Agreement with Chery
It is worth remembering that the Spanish car company signed agreement with Chinese manufacturer Chery in April to create a “joint venture”which aims to produce cars at a plant in a free trade zone and restore jobs for the production of future cars. One of his commitments is to restore 500 jobs from the old Nissan.
Production of two of its own first models Ebro S700 and Ebro S800.it is planned to launch before the end of 2024. In addition, the company will also start production of the S400 model in the first half of the year, and in the last months of 2025 they want to have a “downsized” version. it’s ready.
Potential growth
EV Motors forecasts very significant growth in total sales, which will develop compared to the 36 million euros expected at the end of 2024. (depending on the start of vehicle production), to more than 1.918 million euros, expected by 2029, when the company estimates it will register a positive balance of 250 million euros.
These forecasts are based on the production and sales of vehicles with About 1,400 vehicles are expected to be produced and sold in fiscal 2024.will exceed 30,000 units sold in 2025. Accelerated growth is expected in the coming years to exceed 130,000 units sold in 2029.
In terms of debt, the equity ratio was 4.6 times and EV Motors warns that it had a liability of 102 million euros at the end of 2023, 40 of which relates to the purchase of Nissan’s Barcelona assets. Besides, Chery (through O&J Automotive Netherlands) has an option to purchase a 9.9% stake in EV Motors. which could come into force within three years of listing, presumably until the end of 2027.
At the same time, the company guarantees that Chery may abandon its investment in EV Motors for next year in the amount of “about 30 million euros” if the company “fails to achieve sufficient utilization of the free zone plant’s production capacity” and other agreements such as capital increase subscriptions or government licenses, “ideally by December 31.”