EVgo Stock Plummets as Biggest Investor Sells 23M Shares | Global News Avenue

EVgo stock (evgo) when electric vehicle (EV) charging station operators announced secondary public offering Its shares are held by its largest investors.

EVgo Holdings, an affiliate of LS Power Equity Partners, plans to sell 23 million shares of Class A common stock and intends to give underwriters a 30-day option to purchase an additional 3.45 million shares in the public offering, the company reported. price.

EVgo noted that it will not place any of its shares on the market and that all proceeds from the sale will go to LS Power.

“LS Power, the selling shareholder in this offering, owns a majority of our voting shares,” the company noted in a regulatory filing. It added that due to its large stake, “LS Power is able to respond to needs ”

While EVgo didn’t detail EVgo Holdings’ Class A stock holdings, the company did show it owns 195.8 million Class B shares, giving EV Holdings 66.5% of EVgo’s total investor voting power.

EVgo closed $1.25B DOE loan last week

Last week, EVgo explain The company has received a $1.25 billion loan guarantee from the Department of Energy to install 7,000 electric vehicle chargers across the country over the next five years. However, the company warned that its business would be “materially adversely affected” if it failed to meet the terms of the loan, sending its shares lower.

Although EVgo shares fell about 25% shortly after the market opened on Tuesday, they are still up about 30% in 2024.