Why Is Fast Charging Network EVgo Stock Plunging Today?

EVgo Inc. EVGO shares are trading lower in premarket trading following the announcement of the pricing of a secondary public offering.

The previously announced offering by EVgo Holdings, an affiliate of LS Power Equity Partners IV, involves 23 million shares of EVgo’s Class A common stock priced at $5.00 per share.

Additionally, LS Power has granted underwriters a 30-day option to purchase up to 3.45 million more shares at the same price.

Notably, EVgo itself is not selling any shares, and the company will not receive any proceeds from the offering. Instead, all funds raised will go to LS Power.

The offering is expected to close on December 18, 2024, pending standard closing conditions. J.P. Morgan, Goldman Sachs, Morgan Stanley, and Evercore ISI are leading the offering, with several other financial institutions involved.

Also Read: EVgo: $1.25B ‘Holiday Gift’ Propels It To JPMorgan’s Top Pick List

Recently, EVgo announced the closure of a $1.25 billion guaranteed loan facility from the U.S. Department of Energy’s Loan Programs Office.

This loan is part of the DOE’s Title 17 Clean Energy Financing Program and is designed to support EVgo’s ambitious plans to expand its public electric vehicle (EV) charging infrastructure.

The company aims to build 7,500 new fast charging stalls across the U.S., increasing its network to at least 10,000 stalls by 2029.

This expansion will more than triple EVgo’s network footprint, positioning it as a leader in supporting the country’s transportation electrification efforts.

Price Action: EVGO stock is down 22.5% at $4.898 premarket at last check Tuesday.

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Image: Courtesy of EVgo, Inc.