EV Transportation Services Inc. (EVTS) recently announced its withdrawal of the plan for an initial public offering (IPO) due to unfavorable market conditions for smaller companies. The Massachusetts-based manufacturer of all-electric lightweight commercial utility vehicles had initially filed for an IPO on September 16, 2022.
While the withdrawal of the IPO does not imply that the company will not pursue it in the future, EVTS has requested that all fees paid for the IPO filing be credited to the company for potential future use. This decision has been made in light of recent market trends.
During the past three months, the Global X Autonomous and Electric Vehicles exchange-traded fund (DRIV) has experienced a significant rally, with a 14.6% increase. Similarly, the Renaissance IPO ETF (IPO) has shown a strong performance, advancing by 14.5%. In comparison, the Russell 2000 index of small capitalization stocks (RUT) has climbed by 10.9%, while the S&P 500 (SPX) has gained 9.1%. These figures provide a broader context for EVTS’s decision to withdraw their IPO plan.
Although EVTS’s IPO plan has been postponed for now, the company remains open to exploring future opportunities in the public market.