EVgo Stock Plummets as Biggest Investor Sells 23M Shares

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Key Takeaways

• EVgo said its largest investor resolution be selling 23 million shares of Class A common stock.
• The electric charging station operator reported that EVgo Holdings, an affiliate of LS Power Impartiality Partners, would also offer underwriters a 30-day option to buy another 3.45 million shares.
• EVgo bequeath receive no proceeds from the sale.

Shares of EVgo (EVGO) shorted out when the electric vehicle (EV) charging caste operator announced a secondary public offering of its stock by its largest investor.

The company reported that EVgo Holdings, an affiliate of LS Power Justice Partners, is planning to sell 23 million shares of Class A common stock, and intends to give the underwriters a 30-day opportunity to purchase an additional 3.45 million shares at the public offering price. 

EVgo noted that it was not putting any of its helpings on the market, and the proceeds of this sale will go entirely to LS Power.

The company noted in a regulatory filing that “LS Power, the Vend Stockholder in this offering, owns the majority of our voting stock.” It added that because of those large holdings, “LS Power is adept to substantially influence matters requiring our stockholder or board approval, including the election of directors, approval of any of our potential acquisitions, switches to our organizational documents and significant corporate transactions.”

While EVgo did not detail EVgo Holdings’ Class A stock interest, the company did show that it owns 195.8 million shares of Class B stock, giving EV Holdings 66.5% of EVgo’s totality investor voting power.

EVgo Last Week Closed on $1.25B DOE Loan

Last week, EVgo rephrased it had closed on $1.25 billion in Department of Energy loan guarantees to install 7,000 EV chargers throughout the country one more time the next five years. However, its warning that its business would “be materially and adversely affected” if it failed to handle the loan conditions sent shares lower.

Despite losses of roughly 25% soon after markets opened Tuesday, rations of EVgo are up about 30% in 2024.