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

Beast Finance learned that the US-based electric car rental platform “EV Mobility” has recently submitted a prospectus to the US Securities and Exchange Commission (SEC) to apply for a NASDAQ IPO under the stock code (EVMO). EV Mobility plans to issue 1.75 million shares at a proposed median price of 5 US dollars per share through this NASDAQ IPO listing and raise 8.75 million US dollars in capital.

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 deals since 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 that the industry's projected 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 summarized EV Mobility's financial performance 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 as of September 30, 2023 was USD 211,294, USD 376,287, and USD 113,789, respectively.

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

(4) Operating profit (loss): EV Mobility's operating profit for 2021, 2022, and as of September 30, 2023 was USD 563,284, USD 1,177,795, and USD 827,963, 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 flow for 2021, 2022, and as of September 30, 2023 was USD 328,748, USD 1,431,377, and USD 850,184, respectively.

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

In 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 summarized the EV Mobility IPO situation as follows:

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

(2) No existing shareholders have expressed interest in purchasing EV Mobility shares at the IPO price.

(3) If EV Mobility is successfully listed on the NASDAQ IPO, then excluding the impact of overallotted options by underwriters, the company's market value at the time of the IPO will reach US$51.3 million.

(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 reserve 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-be listed company include its small size and limited operating history.

intermediaries

Beast Finance learned through an inquiry into EV Mobility's IPO prospectus that Westpark Capital is the bookkeeper for EV Mobility's current NASDAQ IPO.