Beast Finance learned that the electric vehicle rental platform [EV Mobility], headquartered in the US, has recently submitted a prospectus to the US Securities and Exchange Commission (SEC) to apply for listing on the Nasdaq IPO. The stock code is (EVMO). EV Mobility plans to go through this NASDAQ IPO at $5 per share.

Beast Finance learned that the electric vehicle leasing platform [EV Mobility], headquartered in the US, has recently submitted a prospectus to the US Securities and Exchange Commission (SEC) to apply for listing on the Nasdaq IPO under the stock code (EVMO). EV Mobility plans to issue 1.75 million shares at a proposed central price of 5 US dollars per share and raise 8.75 million US dollars of capital through this Nasdaq IPO listing.

Company business

EV Mobility, headquartered in Beverly Hills, California, USA, is a platform for on-demand electric vehicle rental for customers in commercial locations (luxury hotels, luxury apartment buildings, commercial buildings) through its mobile app.

The company currently has 60 electric vehicles in 39 hotels and has processed thousands of car rental transactions since its inception.

Beast Finance learned by searching EV Mobility's prospectus that the EV Mobility management team is headed by founder and CEO Ramy El-Batrawi. He has been working for the company since the company was founded in 2016. Prior to that, he was the founder of the moving and logistics company PDQ Pickup.

As of September 30, 2023, EV Mobility has received $71,461 in investment from investors.

Industry Overview

According to Mordor Intelligence's 2022 market research report, the size of the global electric vehicle rental market in 2021 is estimated at US$9.13 billion, and is expected to exceed US$20 billion by 2027.

This means the industry's forecast CAGR (compound annual growth rate) from 2022 to 2027 is 14.36%.

The main drivers of this anticipated increase are new consumer habits due to the pandemic, as well as major car rental companies' decision to buy large quantities of electric vehicles by phasing out ICE cars from their fleets over time.

Furthermore, the Mordor Intelligence report also shows that by 2027, the electric vehicle rental market will have the highest growth rate in the Asia-Pacific region, followed by the US/Europe, and finally South America/Africa, as shown in the following chart:,

EV Mobility's main competitors in this industry include:

(1) Hertz Rent a Car (HTZ)

(2) Avis (CAR)

(3) Enterprise

(4) Zipcar

(5) Uber

(6) Lyft

Financial situation

According to the IPO prospectus, Beast Finance has compiled the financial results of EV Mobility as follows:

(1) Total revenue: EV Mobility The total revenue for 2021, 2022, and as of September 30, 2023 is: $38,541, $258,222, and $395,349, respectively.

(2) Gross profit (loss): EV Mobility's gross profit for 2021, 2022, and the period ending September 30, 2023 is: $211,294, $376,287, and $113,789, respectively.

(3) Gross profit margin: EV Mobility's gross margins for 2021, 2022, and as of September 30, 2023 are: -548.23%, -145.72%, and 28.78%, respectively.

(4) Operating profit (loss): EV Mobility's operating profit for 2021, 2022, and the period ending September 30, 2023 was: 563,284 US dollars, 1,177,795 US dollars, and 827,963 US dollars, respectively.

(5) Net revenue (loss): EV Mobility's net revenue for 2021, 2022, and the end of September 30, 2023 was: $563,284, $1,177,795, and $815,429, respectively.

(6) Operating cash flow: EV Mobility's operating cash flows for 2021, 2022, and as of September 30, 2023 were: $328,748, $1,431,377, and $850,184, respectively.

As of September 30, 2023, EV Mobility had $66,551 in cash and $313,157 in total liabilities.

For the 12 months ending September 30, 2023, EV Mobility's free cash flow was negative ($1.3 million).

IPO details

According to the IPO prospectus, Beast Finance has compiled EV Mobility's IPO situation as follows:

(1) EV Mobility plans to issue 1.75 million shares at a proposed median price of $5 per share through the Nasdaq IPO and raise $8.75 million in capital.

(2) No existing shareholders have expressed interest in buying EV Mobility shares at IPO prices.

(3) If EV Mobility is successfully listed in the Nasdaq IPO, then excluding the impact of overallotment options from underwriters, the company's market value at the time of the IPO will reach 51.3 million US dollars.

(4) Regarding the lawsuit over the pending law, EV Mobility management stated that the company was not affected by major legal or administrative lawsuits pending.

(5) EV Mobility currently plans not to pay dividends and reserves any future earnings for future operations and growth plans.

(6) The market opportunities for providing electric vehicles as rental cars are huge, but the company faces intense competition from major car rental companies.

(7) The risks faced by the company as a soon-to-go public company include its small size and limited operating history.

intermediaries

Beast Finance learned by searching EV Mobility's IPO prospectus that Westpark Capital is the bookkeeper for EV Mobility's current NASDAQ IPO listing.