Fastned shares go through the roof, despite a cancelled public offering at Euronext

Avatar for Martijn Hoogeveen
By
Fastned First Day of Trade upon Euronext listing

Updated: June 26, 2019

Fastned, a Dutch-based scale-up company that develops and runs a network of 101 fast-charge stations for Full Electrical Vehicles (FEVs) in The Netherlands, UK and Germany, moved its listing again. This time from tiny nxchange to mainstream Euronext Amsterdam. The market opened last Friday at 11 euro, and closed at 52.99 euro. A run of almost +430%! The days afterwards the bubble deflated quickly. I am particularly interested in the moves of Fastned as it initially IPO’ed at NPEX, the exchange where Icecat is listed since February 2017.

Failed offering, successful listing

Fastned, with its track record of burning money of mainly private investors – it has collected 40 million euro thusfar – failed to convince institutional investors to participate in a planned public offering as part of its listing process. Likely, the main reason was doubts over its ability to become cashflow positive within the foreseeable future. Despite a formidable revenues growth by 195% year-on-year in 2018, the annual revenues were only 1.6 million euro. The losses in 2018 were 6.3 million euro, and increased in absolute terms faster than the revenues. A bigger challenge than profitability – with current growth rates, the company is projected to be break-even in 2020 – is the cash need for investments in the expansion and upgrade of the network of fast-charge stations. That’s the real cashburner. Profit is an opinion – in what term are the investments depreciated – cash is a fact.

The Fastned board took the decision to list its shares nevertheless at Euronext, which was heartily welcomed by the more idealistically motivated small investor. The orderbook shows during the weekend – outside trading hours – a demand for 1,437 shares whilst only 9 shares are on offer! With a trading volume of almost 4 million euro during the first trading day, this shows that there is a clear potential for placing new shares, and it is hardly understandable why the Fastned board had decided against the public offering, and thus ignoring the cold responses of institutionals. Now, it’s a gamble if the market will not cool off before the company burns through its cash. The board will point at the share price as proof that the company was undervalued before. Institutional investors might question the rationale of idealistically motivated small investors.

Listing without public offering

Also Spotify followed the route of the direct listing without public offering, avoiding the expensive bank fees associated with share placement and underwriting. It was seen as a great success. Barry McCarthy, CFO of Spotify, sees it as an innovation of the IPO process in which listing and placing new shares are decoupled. Such a scenario might be an interesting option for Icecat as well.

Likethumbsup(2)Dislikesthumbsdown(0)

Avatar for Martijn Hoogeveen

Founder and CEO of Icecat NV. Investor through iMerge. PhD Multimedia at Delft University of Technology. Former Professor Multimedia/E-commerce at Open University Netherlands.

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Manual for Icecat URL: Integrating Links to Product Data Sheets and Images

Version: 1.21, August 28, 2019.The purpose of this post is to explain the Icecat URL method to get...
 October 4, 2018

Manual for Icecat Live: Real-Time Product Data in Your App

Icecat Live is a (free) service that enables you to insert real-time product content from some hundr...
 June 1, 2018

Iceclog: Content Log and Playground for New Ideas like a Free Vendor Central and Social Media Functions

“Iceclog” (Icecat content log) is the Icecat blog, where you will find...
 June 26, 2019

Manual for the Icecat CSV Interface

This document describes the CSV (Comma-Separated Values) variant of Icecat's Open Catalog Interface...
 September 28, 2016

Manual for Open Icecat JSON Product Requests

JSON (JavaScript Object Notation) is an increasingly popular means of transferring to data, comparab...
 September 17, 2018

Manual for your Personalized Interface File and Catalog from Icecat

Via the Icecat website and login area, a user can generate personalized or customized CSV or Excel f...
 October 5, 2016

Iceclog Editor Guidelines: Writing Compelling Posts

The Iceclog Editor Guidelines are a quick guide for contributors to the Iceclog blog or "cl...
 August 17, 2016

Icecat Add-ons including Magento, PrestaShop, Oracle, SAP Hybris, Google Shopping. NEW: JS.NODE

Icecat has a huge list of integration partners, that make it easy for clien...
 October 25, 2019

Manual for Testseek Product Reviews Integration via Icecat

Icecat provides aggregated expert reviews from its activity Testseek, as an add-on service for both ...
 October 19, 2015

Apple Watch: a Useful Tool or a Smart Toy?

After six months spent with my Apple Watch, I am still not sure if I consider it a useful tool or "j...
 September 30, 2016