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German solar car firm Sono Motors files for U.S. IPO -Breaking

© Reuters. The prototype German solar car manufacturer Sono Motors has the “Sion”, a car with solar cell panels, on its hood in Munich. August 1, 2018. Picture taken August 1, 2018. REUTERS/Andreas Gebert/Files

(Reuters) – Sono Motors (Germany’s solar-powered car company), filed on Friday for a U.S. initial publicly offered (IPO). This is in response to investor demand, as more governments around the world push for greener transport.

Reuters published March’s report that Sono was considering a U.S. stock exchange listing, which could bring the company to more than $1Billion. Sources close to the matter reported that Sono had consulted people familiar with the matter.

Sono was established in 2016 in Munich by four of their friends. The Sion is a fully electric vehicle with integrated solar cells. This car can travel up to 355 km (or 18.92 miles) on a single charge and is compatible with both solar energy or traditional power outlets.

According to the filing, it plans to start delivering cars by the second half of 2023.

Sono received more than 14,000 reservations and advance payments from customers in August, an increase of 31.8 million euros from the total cash inflows at June’s end.

These are reservations that correspond to an estimated net sales volume around 300 million euros.

Sono indicated that it plans to license the technology and sell it to bus, truck and train manufacturers as well as camper van manufacturers.

In its filing to the COP26 climate negotiations in Glasgow next month, the company highlighted that electric mobility is needed for all climates.

According to a report on Monday, government policy reforms could lead to zero-emission vehicles accounting for around 30% on all roads by 2030.

According to a report by McKinsey & Company, the COVID-19 pandemic has also prompted many governments to increase consumer incentives for electric vehicle purchases as part of economic stimulus programs.

Berenberg, Craig-Hallum and others are the underwriters of this offering.

($1 = 0.8593 euros)

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Mike Robinson
Mike covers the financial, utilities and biotechnology sectors for Street Register. He has been writing about investment and personal finance topics for almost 12 years. Mike has an MBA in Finance from Wake Forest University.