Shares of Allego (NYSE:ALLG) are in the spotlight today, trading 20% higher before falling into the red. Yesterday, the company made its debut on the New York Stock Exchange (NYSE) after merging with Spartan Acquisition III. Allego will receive gross proceeds of about $161 million. The gross proceeds includes a private investment in public equity (PIPE) from sponsors like Apollo Global Management and the Meridiam Group. Additionally, Allego’s management rang the opening bell at the NYSE this morning. So, why exactly is ALLG stock on watch today?
Why Is ALLG Stock on Watch Today?
There seems to be no company-specific news to explain Allego’s price action today. However, as a newly listed company, it should be expected that Allego will experience volatile action. As news of the debut circulates, interested traders may buy into the stock searching for a quick gain to take advantage of the volatility. Furthermore, it seems the company has struck a chord with retail investors. On Stocktwits, mentions of the ALLG ticker have increased by over 300%.
Allego was acquired by the Meridiam Group in 2018. Combined with management and former advisors, the three parties will own 74% of the Allego.
CEO Mathieu Bonnet has high hopes for Allego, adding that:
“Since our founding, we have experienced tremendous growth, and the demand for effective and convenient charging services increases each day. As a public company, we’re confident we have the right strategy, team and capital to continue meeting the needs of the expanding EV market.”
What Does Allego Do?
Allego provides electric vehicle (EV) charging solutions for a range of individual and enterprise customers. The company was founded in 2013 and offers an end-to-end solution, which means that no third-parties are necessary to set up the charging infrastructure. Furthermore, Allego operates more than 28,000 charging stations across Europe that are connected with its proprietary platform, EV-Cloud. These charging stations offer several forms of charging, such as regular, fast and high power.
Allego has not released its 2021 financial results yet. However, the company has released an unaudited preview of its financials. For the fiscal year 2021, the company is expected to post revenue of 86 million euros, up 95% year over year (YOY). The revenue was driven by 6.1 million charging sessions, up 65% YOY. In addition, total users grew by about 70% YOY, bringing the cumulative user count to 620,000 customers. Finally, Allego expects “strong utilization trends to continue in 2022 amidst rapid growth of our network, from secured sites and expanded B2B partnerships.”
On the date of publication, Eddie Pan did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.