CPE News (10/20/2021) – E Automotive Inc. dba E INC has filed an amendment to its preliminary base PREP prospectus for a proposed initial public offering (IPO) of common shares.
E INC is proposing to issue between 5,434,783 and 6,578,947 common shares at CDN $19.00 and CDN $23.0 per share for gross proceeds of CDN $125 million or CDN $143.75 million if the over-allotment option is fully exercised.
At an offering price of $21.00, the midpoint of the estimated price range, E INC will have 45,023,146 common shares issued and outstanding on a non-diluted basis (54,286,451 on a fully diluted basis), or 45,916,003 Common Shares issued and outstanding on a non-diluted basis (55,179,308 on a fully diluted basis) if the over-allotment option is exercised in full.
At the price of $21.00, E INC would be valued at CDN $1.14 billion on a fully diluted basis, or CDN $1.16 billion assuming full exercise of over-allotment option.
Toronto based E INC’s mission is to optimize the online vehicle buying, selling, and management experience for automotive dealers and consumers. E INC has a digital platform that provides automotive dealerships with access to an online wholesale auction marketplace where they can purchase or sell vehicles to other dealers, as well as access innovative software solutions to support dealers’ digital retailing and inventory management.
For the fiscal year ended December 31, 2020, E INC reported $30.3 million in revenues, $13.8 million in gross profit, $6.4 million in operating loss and $6.7 million in net loss. For the six months ended June 30, 2021, E INC reported $37.2 million in revenues, $18.4 million in gross profit, $5.2 million in operating loss and $6.8 million in net loss. (all dollar figures are in US $)
E INC has over 600 employees as of June 30, 2021.
Following the pre-closing re-organization, Intercap Equity Inc. and McConkey Real Estate Holdings, LLC, the two largest shareholders will own 26,176,760 and 6,529,250 shares respectively. Jason Chapnik beneficially owns, controls or directs, directly or indirectly, all of the equity interests of Intercap Equity Inc. and Robert McConkey beneficially owns, controls or directs, directly or indirectly, all of the equity interests of McConkey Real Estate Holdings, LLC.
photo credit: E INC